January 29, 2015 4:35 PM ET

Capital Markets

Company Overview of Trian Fund Management, L.P.

Company Overview

Trian Fund Management, L.P. is an employee owned investment manager. The firm provides its services to pooled investment vehicles and single investor investment vehicles. It primarily invests in public equity and alterative investment markets of the globe. The firm invests in the undervalued stocks and employs fundamental analysis to create its portfolio. Trian Fund Management, L.P. was founded in 2005, and is based in New York City.

280 Park Avenue

41st Floor

New York, NY 10017-1217

United States

Founded in 2005

Phone:

212-451-3000

Fax:

212-451-3134

Key Executives for Trian Fund Management, L.P.

Founding Partner and Chief Executive Officer
Age: 71
Founding Partner and President
Age: 71
Founding Partner and Chief Investment Officer
Age: 53
Chief Financial Officer
Age: 40
Partner
Compensation as of Fiscal Year 2014.

Trian Fund Management, L.P. Key Developments

Trian Fund Management, L.P. Announces Board Appointments

Trian Fund Management, L.P. announced the formation of Trian Advisory Partners and named three former CEOs with deep corporate leadership and operational experience as its founding members. Trian Advisory Partners will provide support to Trian by identifying potential investment opportunities, assisting with due diligence, formulating strategic and operating initiatives for the companies in which Trian invests, and engaging with public company management teams, Boards of Directors, shareholders, and external advisors. The initial Trian Advisory Partners are: William R. Johnson, Dennis M. Kass and Dennis Reilley. William R. Johnson will begin serving as a Director of PepsiCo Inc. effective March 23, 2015 and currently serves as a Director of Emerson Electric Co. and United Parcel Service Inc. He is also an Operating Partner with the private equity firm Advent International. Dennis M. Kass was Non-Executive Chairman of Legg Mason Inc., from July 2013 to October 2014, and presently serves as a Director. He is also the retired Chairman of Jennison Associates. Dennis Reilley is the retired Chairman, President and Chief Executive Officer of Praxair Inc. Prior to joining Praxair in 2000, Mr. Reilley was with E.I. DuPont de Nemours and Company (DuPont) and its former energy subsidiary, Conoco, where he held numerous roles of increasing responsibility, including Executive Vice President and Chief Operating Officer of DuPont. He currently serves as Non-Executive Chairman of Marathon Oil Corporation and as a Director of Dow Chemical Company and Covidien Ltd. He is a former Director of the H.J. Heinz Company and the Entergy Company, as well as a former Chairman of the American Chemistry Council.

Trian Establishes Trian Advisory Partners to Assist In Investment Process

Trian Fund Management, L.P. has formed Trian Advisory Partners. In a release, the group noted that Trian Advisory Partners will provide support to Trian by identifying potential investment opportunities, assisting with due diligence, formulating strategic and operating initiatives for the companies in which Trian invests, and engaging with public company management teams, Boards of Directors, shareholders, and external advisors. Nelson Peltz, Chief Executive Officer and a Founding Partner of Trian, commented, "We are thrilled to welcome these world-class executives to Trian. We are honored that they are willing to devote significant time to working with us on various aspects of our investment process." Trian seeks to invest in high-quality but undervalued and under-performing public companies and to work constructively with the management and boards of those companies to significantly enhance shareholder value for all shareholders through a combination of improved operational execution, strategic re-direction, more efficient capital allocation and increased focus.

Nelson Peltz Wants PepsiCo To Buy Mondelez

Nelson Peltz, an investor who has stakes in Pepsico, Inc. (NYSE:PEP) and Mondelez International, Inc. (NasdaqGS:MDLZ), said that he wants PepsiCo to buy Oreo cookie maker Mondelez and spin off its own underperforming beverage unit. Trian Fund Management, L.P., whose investment funds managed by it currently beneficially own in excess of $1.3 billion of shares of common stock of PepsiCo released a detailed “White Paper” outlining strategic alternatives Trian believes would drive substantial value creation for all PepsiCo shareholders. Trian believes PepsiCo is at a strategic crossroads as secular forces ranging from changing consumer tastes to the increased importance of emerging markets have changed the outlook for its key businesses. The company stated: “Trian believes PepsiCo’s current structure is increasingly unmanageable. While it has a leading portfolio of 22 billion-dollar brands, PepsiCo has underperformed its peers as it grapples with the differing needs of its fast-growth (snacks) and slow-growth (beverages) businesses and the resulting inherent conflict in allocating its resources. Trian has urged the company to consider strategic alternatives to enhance shareholder value: Alternative A: Trian believes the way to maximize value at PepsiCo would be to merge PepsiCo with Mondelez creating a leading global snacks company with one of the most valuable brand portfolios in the world. PepsiCo could then use this merger as a catalyst to spin off its beverages business. This approach would create substantial cost and revenue synergies and the opportunity for margin and capital structure efficiencies. With substantial overlap between PepsiCo’s and Mondelez’s largest shareholders, both companies’ shareholders would benefit, with Trian estimating this combination could lead to approximately $175 of implied value per PepsiCo share and approximately $72 of implied value per Mondelez share, by the end of 2015. Alternative B: If PepsiCo does not pursue a transaction with Mondelez, we believe it must separate snacks and beverages. We believe a separation will create a focused snacks leader positioned to have its trading multiple re-rated as it delivers attractive growth and productivity initiatives that hit the bottom line. We believe it will also create a beverages leader whose trading multiple will be re-rated as it combines an efficient capital structure, high dividend and operational improvements to unlock value. Trian believes this strategic alternative could lead to approximately $136 to $144 of implied value per share by the end of 2015, while preserving the possibility of a strategic transaction in the future, which could create additional value.”

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
August 22, 2014
Pepsico, Inc.
Merger/Acquisition
August 18, 2014
Family Dollar Stores Inc.
Merger/Acquisition
July 28, 2014
Family Dollar Stores Inc.
 

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