Mariner Holdings, LLC to Grow Asset Management Business; Signs Definitive Agreement to Acquire Controlling Interest of Tortoise Capital Advisors, LLC
Strategic partnership to build value for asset management clients with innovative products and thought leadership
FOR IMMEDIATE RELEASE
LEAWOOD, Kan. — June 3, 2009 — Mariner Holdings, LLC (Mariner) today announced that Mariner and senior management at Tortoise Capital Advisors, LLC (Tortoise) have entered into a definitive agreement to acquire all of the ownership interests in Tortoise from Kansas City Equity Partners (KCEP) and affiliates of KCEP and Fountain Capital Management. Mariner will purchase a majority stake in Tortoise, with the intention to provide growth capital and resources, and serve as a complementary strategic partner in the asset management business.
Tortoise Managing Directors will continue to own approximately 35% of the advisory business and have signed employment commitments. Tortoise will initiate an equity ownership plan in which four senior Tortoise employees will also purchase equity. The current Managing Directors, Kevin Birzer, Zachary Hamel, Ken Malvey, Terry Matlack and David Schulte, will continue to manage Tortoise and serve as its Investment Committee Members. The management of each of the Tortoise funds will also remain the same.
The agreement helps propel Mariner further into the asset management business, a key pillar of its strategic vision. Mariner plans to expand its asset management business through additional product offerings, distribution capabilities and an expanded client base. The Tortoise team will enhance this effort through its expertise in closed-end fund thought leadership, development and management. Tortoise's platform adds four publicly traded closed-end funds as well as private funds and separately managed accounts to Mariner's asset management business. Tortoise, established in 2002, has approximately $1.9 billion of assets under management focused on the energy sector, including master limited partnerships as of April 30, 2009.
"Tortoise will strengthen our asset management capabilities, and fits our long-term strategy to create a world-class asset management business," said Marty Bicknell, Chairman and CEO of Mariner. "Over the past two years we have been methodically building our capabilities in the industry, and this agreement will take our combined assets under management to $3 billion, including both asset management and private wealth. The Tortoise team brings significant depth, including closed-end fund development and management, portfolio management, client services and operational support, which will provide a well established platform for continued growth.”
"We are pleased to announce our partnership with Mariner," said Mr. Birzer. “We are particularly pleased to be affiliated with a well-capitalized firm in our home town, which shares our vision of creating differentiated products to serve investors. This is a strategic partnership of two entrepreneurial companies that will provide a dynamic asset management team dedicated to providing clients with innovative products and industry-leading service.”
The transaction is expected to close in the third calendar quarter of 2009 and is subject to customary regulatory approvals and the approval of the new investment advisory agreements by the stockholders of Tortoise's funds. Having approved the transaction, the independent Board of Directors of each of the Tortoise funds has recommended that the stockholders approve a new investment advisory agreement with Tortoise.
Mariner Equity Management served in an advisory role to Mariner Holdings in this transaction.
About Mariner Holdings, LLC
Founded in 2006 by former A. G. Edwards investment professionals and management staff, Mariner is an independent investment company focused on wealth and asset management. The asset management platform provides institutional investors, foundations and third party managers with high quality core and alternative investment strategies. The wealth management platform offers business owners, executives, and high net worth individuals extensive portfolio management, tax and estate planning, risk management and other services. For more information, visit www.mariner–holdings.com.
About Tortoise Capital Advisers
Tortoise Capital Advisors, L.L.C. is a pioneer in capital markets for master limited partnership (MLP) investment companies and a leader in closed-end funds and separately managed accounts focused on MLPs in the energy sector. As of May 31, 2009, the adviser had approximately $2.0 billion of assets under management. For more information, visit www.tortoiseadvisors.com.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Forward-Looking Statement
This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although Mariner Holdings, LLC believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, Mariner Holdings, LLC does not assume a duty to update this forward-looking statement.
Contact information: Mariner Holdings, LLC, Mike Hazell, (913) 647-9770, mike.hazell@marinerwealthadvisors.com