Schroders will completely exit their equity stake in RWC Partners, while Lincoln Peak Capital join as a new long-term partner taking a 27% holding in the company.
Subject to regulatory approval, the transaction will see Schroders completely exit their equity stake in RWC Partners. Schroders bought the stake in 2010, which stood at 49% but has since been diluted due to the growth of RWC's assets over this time period.
RWC has found a new long-term partner in Lincoln Peak Capital, a firm that specialise in long-term (10-year+), minority investments in asset managers. Investment Week can reveal the firm is to buy a 27% stake, with the rest of Schroders' position taken up by RWC itself and its shareholders.
Dan Mannix, CEO of RWC, told Investment Week that the deal is a "counter-trend in some respects given the amount of M&A activity we are seeing in the sector. It offers us a huge amount of stability that you do not often see in organisations under a lot of corporate change".
"We see a lot of opportunity to expand in terms of new capabilities and distribution," he added. "We are positioning ourselves to take advantage of the current operating environment.
"We would like to thank Schroders for the support they have shown our organisation over the last nine years. In Lincoln Peak, we welcome a new shareholder to RWC who we have known for many years. Lincoln Peak is a very attractive partner for us who has committed to our organisation for the next decade and beyond.
"Tony Leness, co-founder and managing partner at Lincoln Peak, said: "We feel very fortunate to have the opportunity to partner with RWC shareholders and RWC's exceptional investment teams, management and staff.
"Our long-term relationship with the company provided us with a unique window to understand RWC's culture and future potential, allowing us to play an active role in assisting the key stakeholders to effect this transaction in a manner that will allow RWC to retain its independence and successful trajectory."
Seth Brennan, co-founder and managing partner at Lincoln Peak, added: "We believe that RWC's entrepreneurial culture and commitment to providing its talented investment teams with clear incentives, world-class support and the independence to focus on client outcomes is designed to deliver exceptional, long-term results for clients."