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Perella Weinberg Partners Asset Based Value Strategy Announces Sale of Flagship Rail Services to Sumitomo Mitsui Banking

  Perella Weinberg Partners Asset Based Value Strategy Announces Sale of
  Flagship Rail Services to Sumitomo Mitsui Banking Corporation

                      Transaction Valued at $1.1 Billion

Business Wire

NEW YORK -- December 12, 2013

Perella Weinberg Partners Asset Based Value Strategy, a leading alternative
asset management strategy and a unit of Perella Weinberg Partners, today
announced the sale of its portfolio company, Flagship Rail Services LLC
(“Flagship Rail”), to Sumitomo Mitsui Banking Corporation (“SMBC”), in a
transaction valued at $1.1 billion. Subject to regulatory approvals and
customary closing conditions, the transaction is expected to close by the end
of the year.

Flagship Rail is a premier full service lessor of long-lived rolling stock,
offering comprehensive rail leasing solutions in North America. It is the
ninth-largest railcar lessor in North America by number of railcars, with a
fleet of approximately 15,000 railcars that are positioned to carry a wide
variety of commodities and serve a broad range of industries, including
energy, steel, agriculture, petrochemical and consumer goods. Flagship Rail
was founded in 2006 as AIG Rail Services Inc.

Perella Weinberg Partners Asset Based Value Strategy acquired Flagship Rail in
May 2011, with a view to transition the company to a standalone business,
cultivate a fixed income and bank investor base and grow the size and
diversity of the portfolio to optimize the stability of cash flows. Since
purchasing the company, Flagship Rail has increased its fleet by more than 50%
and has an active debt capital market investor base of more than 50
institutions.

David Schiff, Partner at Perella Weinberg Partners and Portfolio Manager of
the Asset Based Value Strategy, said, “Flagship Rail is a prime example of the
Asset Based Value Strategy’s ability to create substantial value for investors
while partnering with management to enhance an enterprise’s value to all its
stakeholders. Since acquiring the business more than two years ago, we have
established Flagship Rail as a premiere rail leasing solutions company in
North America. We are excited about this transaction, and believe that
Flagship Rail is well-positioned to continue on its growth trajectory with
SMBC. SMBC is an excellent steward, with a more competitive cost of capital
and long-term commitment to the space, and we are confident Flagship Rail will
continue to flourish as part of that organization.”

Eugene Henneberry, President and Chief Executive Officer of Flagship Rail,
said, “Perella Weinberg Partners Asset Based Value Strategy has been an
incredible partner during this transformational period for Flagship Rail. As a
result of their investment and support, we have grown and positioned the
business to benefit from the positive market dynamics in the rail industry. We
look forward to joining forces with SMBC to further expand our opportunities
and accelerate our growth.”

Perella Weinberg Partners Asset Based Value Strategy actively invests in asset
based opportunities in a wide range of asset classes and investment
structures. Its investments include, among others, CarFinance Capital, a
non-prime automobile finance company; Flagship Credit Acceptance LLC, a
leading national indirect automobile finance company; Grand Bazaar Shops, a
new outdoor retail destination on the Las Vegas Strip; Liberty Island
Financial LLC, a joint venture with Prudential Mortgage Capital Company; and
Northpoint Commercial Finance LLC, a diversified non-auto inventory finance
lender.

Macquarie Capital, Perella Weinberg Partners and Wells Fargo Securities acted
as financial advisors and Kramer Levin Naftalis & Frankel LLP acted as legal
advisor to Perella Weinberg Partners Asset Based Value Strategy.

About Perella Weinberg Partners Asset Based Value Strategy

Perella Weinberg Partners’ Asset Based Value Strategy is a leading
post-financial crisis provider of U.S. specialty finance solutions. Since
inception in 2008, the Strategy has grown to manage in excess of $2.2 billion
in equity capital through a number of different investment vehicles. Perella
Weinberg Partners Asset Based Value Strategy can deliver significant capital,
technical expertise and infrastructure in a wide range of asset classes and
structures, including both real and financial assets. Capital for the Strategy
is contributed by, among others, a diversified group of institutional
investors who seek to invest in compelling opportunities at favorable
valuations. For more information on Perella Weinberg Partners’ Asset Based
Value Strategy, please visit http://www.pwpartners.com.

About Perella Weinberg Partners

Perella Weinberg Partners is a leading independent, client-focused financial
services firm providing advisory and asset management services to a broad,
global client base, including corporations, institutions and governments. The
Advisory business advises clients on mergers, acquisitions, defense advisory,
financial restructuring, private capital raising, and pension matters. The
Asset Management business includes a suite of hedge fund strategies, private
investment funds (including real estate) and outsourced CIO solutions.
Together with its affiliates, the Asset Management business has capital
commitments and managed assets of approximately $10.4 billion. With more than
400 employees, Perella Weinberg Partners maintains offices in New York,
London, Abu Dhabi, Denver, Dubai, and San Francisco. For more information on
Perella Weinberg Partners, please visit http://www.pwpartners.com.

About Sumitomo Mitsui Banking Corporation

SMBC is headquartered in Tokyo, Japan, and is a wholly-owned subsidiary of
Sumitomo Mitsui Financial Group, Inc. (“SMFG”). Listed on the Tokyo, Nagoya
and New York (via ADRs) stock exchanges, SMFG has a market capitalization of
approximately US$69 billion. SMFG is a leading financial institution in Japan
as well as a global provider of financial services.

Contact:

Perella Weinberg Partners
Kara Findlay, 212-287-3197
or
Sard Verbinnen & Co.
Denise DesChenes / Renée Soto, 212-687-8080
or
Flagship Rail Media Contacts:
Joele Frank
Jonathan Keehner / Andrew Siegel, 212-355-4449
 
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