RHJ International Announces Spin-off of Ripplewood Merchant Banking Operations


Brussels – WEBWIRE – Thursday, January 02, 2014

RHJ International (RHJI) is announcing today that it has completed the spin-off of the merchant banking business previously conducted through Ripplewood into a new entity, Kleinwort Benson Advisors LLC (KBA).

As part of this arrangement, RHJI holds a 19% interest in KBA and will retain access to future unique investment products and services for existing and future clients. In consideration for this stake and as a contribution to the costs of winding down the operations of Ripplewood Holdings LLC, which includes the realisation of the Ripplewood Funds (The Fund) remaining portfolio assets, RHJI has contributed a capped cash amount of US$5 million (3.6 million) and some immaterial assets. RHJI will not fund future expenses beyond this.

In order to ensure the continuity of the business previously conducted by Kleinwort Benson Advisors AG, RHJI has licensed the name Kleinwort Benson Advisors LLC to the new entity for a period of seven years. The licence, which has been granted by RHJIs wholly-owned subsidiary Kleinwort Benson Group Limited (KBG), contains customary protections in favour of KBG, including termination rights in certain circumstances.

Tim Collins holds an 81% stake in the new entity, for which he has invested US$20 million (15 million) of new equity to finance KBAs future operations. These comprise merchant banking and the realisation of the remaining portfolio assets within the The Fund.

RHJIs existing 13% stake in the general partner of the Fund is not affected by the spin-off. Post spin-off transaction, Ripplewood Holdings LLC will be retained as a subsidiary of RHJI until it is liquidated in conjunction with the ultimate wind-down of The Fund.

About RHJ International

RHJ International is a financial services group with principal activities in wealth management, asset management and merchant banking. Our wealth management operations are conducted through Kleinwort Benson: an independent and relationship-driven private bank. RHJIs asset management operations are carried out by Kleinwort Benson Investors: a Dublin-based institutional asset manager that offers investors innovative and differentiated specialist strategies on both a segregated and unitised basis. RHJI is listed on the Euronext Brussels, with the ticker symbol RHJI.



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