THE ROHATYN GROUP EXPANDS PRIVATE INVESTING BUSINESS IN ASIA THROUGH ACQUISITION OF AYALA’S 50% INTEREST IN ARCH CAPITAL
The Rohatyn Group (“TRG”), a private investment firm focused on emerging markets with approximately $3 billion in assets under management, announced today a definitive agreement to acquire Ayala Corporation’s and Ayala Land, Inc.’s combined 50% interest in ARCH Capital Management Co., Ltd. and ARCH Capital Asian Partners, G.P., via a share exchange. ARCH Capital Management, a Hong Kong SFC licensed asset management company, and ARCH Capital Asian Partners, a Cayman Islands company, are the investment manager and the general partner, respectively, of ARCH Capital Asian Partners, L.P., a $330 million Asia real estate fund. The fund has projects in China, Macau, Singapore, Thailand and India.
The transaction is part of TRG’s strategy to grow its private investing business in Asia. TRG’s 50% partner in both companies is Richard Yue, an Asian real estate investment veteran. Based in Hong Kong, Mr. Yue will continue to serve as CEO and CIO of ARCH Capital Management and portfolio manager of the fund. Mr. Yue will also continue to work closely with Charles Cosgrove, who is joining TRG as a partner from Ayala Corporation, where he headed Ayala’s international real estate operations. Mr. Cosgrove will continue to serve as chairman of ARCH Capital Management and will also help build TRG’s private investing business in Asia.
Ayala Corporation, the Philippines’ oldest business conglomerate which has been a shareholder of TRG since TRG’s founding in 2003, will increase its investment in TRG to become one of the firm’s largest outside shareholders. As one of Asia’s most highly regarded real estate developers, Ayala Land will continue to provide ARCH Capital Management with real estate development expertise.
Nicolas Rohatyn, Chief Executive Officer and Chief Investment Officer of TRG, said, “This transaction gives us a meaningful stake in a proven real estate investing business in the fastest growing region in the world. In Richard we have a partner who is devoted to the business, shares our values, and complements our capabilities. Ayala Corporation’s decision to increase its interest in our firm is a reflection of their unwavering support of TRG’s growth strategy. Moreover, Ayala Land’s commitment to provide ongoing real estate development expertise will continue to differentiate ARCH Capital from its competitors.”
Commenting on the transaction, Ayala Corporation CEO Jaime Augusto Zobel de Ayala said, “We believe this is a natural progression for ARCH which has been a fruitful and exciting investment for us. At this stage in its next growth cycle, we feel it would be better served and managed within a globally dedicated alternative asset management firm. Given Ayala’s successful experience as an investor in TRG for a significant period of time, we believe TRG would be an ideal partner in ensuring ARCH’s continued success. It would also allow us to consolidate our investments in this particular industry grouping.”
Richard Yue said, “The Rohatyn Group’s entry as a new partner is a vote of confidence for the business that we have built at ARCH Capital. We have gained a new shareholder with a world-class asset management platform and an impressive array of investment products. At the same time, Ayala remains committed to the growth of our business and we welcome its willingness to continue providing business input and support for ARCH Capital. With TRG and Ayala as strategic partners, ARCH Capital is uniquely positioned for the next phase of its business.”
Specific terms of TRG’s purchase of ARCH Capital and Ayala’s increased investment in TRG were not disclosed.