TRANSACTION SUMMARY

On 18 January 2016, Northill Capital announced that it would acquire a majority interest in Capital Four. Spencer House Partners acted as financial adviser to Capital Four, an industry-leading European high yield asset management firm, based in Copenhagen, with an award winning performance track record and approximately €6 billion of AuM. Northill’s investment in Capital Four represents approximately 60% of the firm’s equity, with existing partners Sandro Näf, Torben Skødeberg and Henrik Østergaard maintaining ownership of approximately 40%. As a result of the transaction, Northill will indirectly acquire all the equity previously owned by a recently retired partner of the firm, with the balance of the equity also acquired from the existing partners.

Northill’s approach is to ensure that culturally and operationally existing management teams retain the autonomy to continue to run their business. Capital Four will remain in Copenhagen, enabling it to preserve its distinctive culture and location, which provides a favourable vantage point on a complex and fast growing European credit investment universe.

Capital Four will retain day to day operational independence and members of the Northill management team will join the Capital Four Board of Directors. The partners will continue with the firm while the number of equity owners will grow over time to reflect the further development of Capital Four’s strong talent pool. Existing Capital Four equity owners will hold their remaining equity for a minimum of five years, and in addition, each will reinvest a minimum of half of their after tax proceeds into Capital Four’s investment strategies.

CAPITAL FOUR

Capital Four was founded in 2007 and manages European high yield strategies across high yield bonds, leveraged loans, credit long/short and direct lending predominantly on behalf of institutional investors. It is the largest independent high yield investment manager in Europe. Credit views are expressed consistently across the firm’s strategies, which benefit from the same rigorous fundamental bottom-up credit selection and analysis process first established in 1999. Capital Four’s European high yield strategy has continued to achieve strong returns for investors, and has consistently outperformed its benchmark since inception.

NORTHILL CAPITAL

Northill Capital, an independent, privately held asset management business, was established in London in 2010 by Jonathan Little, former Vice-Chairman of BNY Mellon Asset Management, with substantial financial backing from interests associated with the Bertarelli Family. Northill’s long-term strategy is to build a portfolio of high quality, specialist asset management businesses. Combined AuM of firms in which Northill owns a majority interest total approximately $30 billion (as at 31 December 2015).

Northill brings deep industry experience and expertise and the patient, long-term application of substantial private capital to support skilled investment professionals to develop their business.

ROLE

SHP acted as financial adviser to Capital Four.