Guggenheim Partners

Guggenheim Partners, LLC.
Limited liability company
Industry Financial services
Founded 1999
Founder Guggenheim family
Mark Walter
J. Todd Morley
Steven E. Johnson
Headquarters New York City
Chicago
Area served
 Worldwide
Key people
 Mark Walter CEO
Alan Schwartz
Fares Noujaim
Thomas J. Irvin
Scott Minerd
Peter O. Lawson-Johnston II
Andrew M. Rosenfield
Brian T. Sir
Products Investment banking
Capital markets
Investment management
Merchant banking
Wealth management
Insurance services
Exchange-traded funds
Unit investment trusts
Services Diversified financial services
AUM $240 billion
Owner Private
Number of employees
 2,500
Website www.guggenheimpartners.com
www.guggenheiminvestments.com

Guggenheim Partners, LLC is a global investment and advisory financial services firm that engages in investment banking, capital markets services, investment management, investment advisory, and insurance services. The firm is headquartered in New York City and Chicago with 2,500 staff located in 20 cities throughout the United States, Europe, and Asia.[1] It has more than $240 billion of assets under management.[2] The firm's CEO is Mark Walter. It has eight Managing Partners who are key executives, and with a Senior Leadership Team of 17 other executives, oversee the Firm's businesses. It was founded by Peter Lawson-Johnston II, Solomon R. Guggenheim's great-grandson.[3]

Organization

Guggenheim Partners provides services across insurance services, investment banking, capital markets, investment management, merchant banking, and asset management. Guggenheim Investment Advisors oversees about $50 billion in assets.[4]

In June 2009, Guggenheim hired former Bear Stearns CEO Alan Schwartz as Executive Chairman to "focus on transforming Guggenheim's existing broker-dealer, which is focused on sales and trading of fixed income securities, into a full-service investment banking enterprise".[5]

In September 2009, Guggenheim hired former Goldman Sachs partner Peter Comisar as Vice Chairman and Head of West Coast Investment Banking.[6] The West Coast Advisory team is also headed by Managing Directors from Bear Stearns, Moelis & Co and Credit Suisse. The West Coast team focuses on Consumer Retail and Digital E-Commerce advisory while the NY team houses the remaining industry verticals and product groups.

In October 2009, Guggenheim hired former J.P. Morgan head of Media Investment Banking Mark Van Lith as Senior Managing Director and Head of Investment Banking.[7]

In March 2012, Guggenheim hired former Apollo Global Management director and vice chairman Henry Silverman as vice chairman of asset management.[8]

In January 2013, Guggenheim named former Yahoo! interim CEO Ross Levinsohn as CEO of private equity unit Guggenheim Digital Media.[9]

In May & June 2013, the firm also hired Goldman Sachs Group Inc.’s co-head of U.S. leveraged finance capital markets Tom Stein, former Barclays head of retail investment banking and vice chairman Andrew Taussig, as well as managing directors Spencer Hart, Matthew Pilla, Ken Harada and Ryan Mash.[10]

In September 2013, Guggenheim Securities was named a financial adviser to Verizon in connection with its $130 billion acquisition of Vodafone's 45% stake in Verizon Wireless.[11]

On December 17, 2015, it was reported that in response to losses across Guggenheim Partners, the company would spin out its media properties into a new holding company owned by an investment group led by Guggenheim president Todd Boehly, consisting of Mediabistro, Billboard and The Hollywood Reporter, and Dick Clark Productions.[12][13]

Investments

In May 2009, Guggenheim Partners acquired a controlling interest in financial services firm Transparent Value LLC.[14] In July 2009, it acquired Claymore Group, a firm known for its Exchange-traded funds "Guggenheim ETFs".  and unit investment trusts "Guggenheim UITs". .[15] In December 2009, Guggenheim acquired a division of Wellmark and renamed it Guggenheim Life & Annuity.[16] In February 2010, Guggenheim Partners acquired Security Benefit Corp, parent company of Rydex Funds.[17] In October 2011, it acquired the life insurance company EquiTrust from FBL Financial Group.[18] In 2012, Guggenheim affiliates acquired the US annuities business of Canadian insurers Industrial Alliance and Sun Life Financial.[19][20]

In March 2012, Guggenheim Baseball Management acquired the Los Angeles Dodgers team for $2.15 billion in cash.[21] The consortium consisted of Guggenheim controlling partner Mark Walter, former Los Angeles Laker Magic Johnson and partners Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly.[22] The acquisition includes the surrounding land and parking lot of Dodger Stadium.[23] Mark Walter said of the acquisition: "It's a lot of money, but if we do our jobs right...the long-term point of view is that people will see that the value was there."[24]

That September, Guggenheim bought a stake in the entertainment production company Dick Clark Productions,[25] which produces specials such as the American Music Awards and the Golden Globe Awards and other television programming.

In January 2013, the company bought out the remainder of the business-to-business media company Prometheus Global Media[26][27] and acquired CardCash in November of the same year.[28] In February 2014, Guggenheim Partners acquired the Los Angeles Sparks of the WNBA.[29]

Media Investments

In February 2013, Fortune magazine, which is owned by Time Warner, did an investigation into the Guggenheim Partners. They noted that when Magic Johnson bought the Los Angeles Dodgers he was joined by a team which turned out to be the Guggenheim Partners and it was "the main force in the deal, and the eye-popping Dodgers acquisition has been only one of a handful drawing ever more attention to the firm". The article continued that "the New York- and Chicago-based operation has been turning up everywhere in Los Angeles. In September, a Guggenheim group spent a reported $370 million for Dick Clark Productions, the company that produces the Golden Globes telecast and So You Think You Can Dance. A few years before, Guggenheim teamed up with other investors to buy seven trade publications, including the Hollywood Reporter".[30] Despite this, the partners according to the magazine "avoided the cataclysm of the financial crisis", pouncing when "disaster struck".[31] Later in the article they said that since the Guggenheim Partners managed so many billions in assets that they were almost like a private equity firm. Also, they noted that the group is very secretive in its dealings and likes to work behind the scenes with its members consisting of former employees of Bear Stearns, Yahoo and Apollo Global Management. At the end of the article they noted that the partners might buy a sports TV channel owned by Time Warner and if not that, it is "on the hunt for deals".[31]

References

Notes
  1. ↑ "Guggenheim Partners – About Us".
  2. ↑ "Guggenheim Partners – Home".
  3. ↑ "Speaker's Biography: Peter Lawson-Johnston II". Milken Institute. 2005. Retrieved May 1, 2012.
  4. ↑ "Guggenheim ‘Excited’ About Private Equity, Likes Macro Funds". Bloomberg. October 8, 2009. Retrieved October 13, 2009.
  5. ↑ "Alan Schwartz Joins Guggenheim Partners as Executive Chairman". Reuters. June 2, 2009. Retrieved October 13, 2009.
  6. ↑ "Peter Comisar Joins Guggenheim Securities as Vice Chairman and Head of West Coast Investment Banking". prnewswire.com. September 10, 2009. Retrieved October 13, 2009.
  7. ↑ "Mark Van Lith Joins Guggenheim Securities' Investment Banking Group". Reuters. October 7, 2009. Retrieved October 13, 2009.
  8. ↑ Lattman, Peter (March 8, 2012). "Henry Silverman Joins Guggenheim Partners". The New York Times.
  9. ↑ Nicholas Carlson (January 15, 2013). "Ex-Yahoo Interim CEO Ross Levinsohn Is Now CEO Of Guggenheim Digital Media". Business Insider.
  10. ↑ "Guggenheim lands Barclays retail team as flight to boutiques continues". Reuters. May 8, 2013.
  11. ↑ "Verizon Buoys Guggenheim With Taubman on Awarding M&A Roles". Bloomberg.
  12. ↑ "Guggenheim Prepares To Sell Hollywood Reporter, Dick Clark Productions To Exec". Deadline.com. Retrieved 18 December 2015.
  13. ↑ "Guggenheim Media Spins Off Money-Losing Hollywood Reporter, Billboard to Company President Todd Boehly (Exclusive)". The Wrap. Retrieved 18 December 2015.
  14. ↑ "About Us". Transparent Value. Retrieved May 1, 2012.
  15. ↑ "Guggenheim Partners to Acquire Claymore Group". Reuters. July 31, 2009.
  16. ↑ "Guggenheim Capital unit acquires Wellmark Community Insurance". Retrieved 2015-01-05.
  17. ↑ John Spence (February 16, 2010). "Guggenheim buys Rydex parent". The Wall Street Journal. Retrieved May 1, 2012.
  18. ↑ Jennifer Booton. "FBL Financial Sells EquiTrust Life Insurance Co. for $440M". Fox Business.
  19. ↑ "Guggenheim Becoming Major Annuity Player". Retrieved 2015-01-05.
  20. ↑ "Guggenheim affiliate buys Sun Life annuity business for $1.35B". Retrieved 2015-01-05.
  21. ↑ Bill Shaikin and David Wharton (March 27, 2012). "Magic Johnson-led group is picked as Dodgers' next owner". The Los Angeles Times. Retrieved May 1, 2012.
  22. ↑ Matthew Futterman (March 29, 2012). "$2 Billion Dodgers Price Tag Shatters Records". The Wall Street Journal. Retrieved May 1, 2012.
  23. ↑ "Magic Johnson group buys Dodgers for $2 billion". The Wall Street Journal. March 28, 2012. Retrieved May 1, 2012.
  24. ↑ "New LA Dodgers owners explore ways to boost value". Orlando Sentinel. May 2, 2012. Retrieved May 3, 2012.
  25. ↑ Nellie Andreeva. "Guggenheim Partners-Led Group Reaches Agreement To Buy Dick Clark Prods.". Deadline.
  26. ↑ "Prometheus bound". New York Post. Retrieved 29 May 2014.
  27. ↑ "Guggenheim Digital Media Buys Remaining Stake in Backstage, Sonic Bids". Adweek. Retrieved 29 May 2014.
  28. ↑ "Investments 9 Investments in 7 Companies". CrunchBase. Retrieved 2015-02-14.
  29. ↑ Rohlin, Melissa (February 4, 2014). "Sparks bought by investment group led by Magic Johnson and Mark Walter". Los Angeles Times.
  30. ↑ Cendrowski, Scott; Bandler, James (February 28, 2013). "Guggenheim is flexing its $170 billion muscles". Fortune Magazine. Retrieved March 25, 2013.
  31. 1 2 "The Guggenheim Partners". MediaFire.

External links


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