NEW YORK — Norton Reamer's new baby, Asset Management Finance Corp., will celebrate its first birthday Oct. 17 with fresh infusions of capital and near-term plans to ink its first deal or two.
In a recent interview, Mr. Reamer said those deals will mark the start of a new era of finance for money management firms. AMF will provide capital in such a flexible and "non-invasive" way that the number of deals in the sector each year could double from current levels, he predicted.
Mr. Reamer said a typical deal might find AMF extending $20 million or so to a firm looking to transfer founders' equity to the next generation, lift out an investment team from a competitor or do a management buyout. In return, AMF would acquire a "revenue-sharing interest" in the firm's top-line revenues of between 5% and 25%, for a period of anywhere from seven years to 20 years — depending on criteria such as the asset classes the firm invests in and the volatility of its asset flows.