Lightyear Sells Clarion to Legg Mason
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Lightyear Sells Clarion to Legg Mason

clarion partners nf1Lightyear Capital has sold its portfolio company Clarion Partners, a real estate investment firm, to financial services firm Legg Mason. Under the terms of the transaction, Legg Mason will acquire an 83% ownership stake in Clarion Partners for $585 million. The management team will retain 17% of the outstanding equity in Clarion Partners. Lightyear acquired Clarion Partners from ING in February 2011 for approximately $100 million.

Donald marron nf1Lightyear Capital“We have worked closely with Clarion management over the course of the past five years and are very pleased with the outcome of our fund’s investment in Clarion Partners,” said Donald Marron, Chairman and Founder of Lightyear.

Clarion Partners manages private equity real estate across a range of products and strategies for 200 domestic and international institutional investors. The firm is active in the Americas with more than 280 employees based in major markets throughout the US and Brazil. Clarion has approximately $40 billion of real estate assets under management. Clarion is led by Steve Furnary, its Chairman and Chief Executive Officer. The firm was founded in 1982 and is headquartered in New York (www.clarionpartners.com).

Mark Vassallo nf1Lightyear CapitalLegg Mason intends to use Clarion Partners as their primary global real estate investment management platform and brand going forward. “With Clarion’s strong market position, the company has attracted the interest of one of the world’s largest global asset management firms. We are confident there is a bright future ahead for Clarion Partners,” said Mark Vassallo, a Managing Partner of Lightyear.

Lightyear makes control investments in North America-based, middle-market financial services companies. Subsectors of specific interest include asset management, banking, brokerage, financial technology, insurance, and specialty finance.  The firm is headquartered in New York (www.lycap.com).

Morgan Stanley & Co.(www.morganstanley.com) was the financial advisor to Clarion Partners and Lightyear. Grail Partners (www.grailpartners.com) advised the senior management team of Clarion Partners.

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-25-16

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