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