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Manning & Napier (MN) Enters Agreement to Acquire Rainier Investment Management

December 18, 2015 7:30 AM EST

Manning & Napier, Inc. (NYSE: MN), (“Manning & Napier” or “the Company”) announced an agreement to acquire a majority interest in Rainier Investment Management, LLC (“Rainier”), a Seattle, Washington based, active investment management firm with more than $3 billion in capitalization-based U.S. and non-U.S. equity strategies and fixed income products. The acquisition will further diversify Manning & Napier’s product offerings, enhance the firm’s positioning as a provider to defined contribution plans, and broaden its geographic coverage of the western U.S. The investment teams of both Manning & Napier and Rainier will remain autonomous, and the transaction will not result in changes to either firm’s investment personnel or processes. Rainier will continue to operate from their Seattle headquarters.

Under the terms of the transaction, key professionals at Rainier will maintain a 25% ownership stake in Rainier, with Manning & Napier owning the remaining 75%. The transaction is structured with an initial upfront cash payment funded through the Company’s available cash position, with additional payments based on Rainier achieving certain financial targets over a four year period. The transaction is expected to close in the first half of 2016, subject to customary regulatory approvals and closing conditions. Additional financial terms of the transaction were not disclosed.

Patrick Cunningham, Chief Executive Officer of Manning & Napier commented, “Rainier’s investment expertise provides us the opportunity to continue to grow and diversify our business while keeping our research team focused on the investment strategies and processes that have driven Manning & Napier’s success for 45 years. In particular, we are excited to expand the product solutions we offer to defined contribution plan sponsors and participants with market capitalization-based equity strategies, which are often the foundation of a broad participant menu and custom target date products built by advisors and consultants. Rainier’s fundamental approach to active management is an ideal complement to Manning & Napier’s capabilities.”

Jim Ridgeway, President of Rainier added, “We believe the transaction with Manning & Napier will provide the financial, structural and distribution resources to continue to serve our valued clients at a high level, while meaningfully growing our business. All of us at Rainier feel a strong cultural fit with the team at Manning & Napier.”



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