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RiskMetrics Group Announces Investment From Leading Private Equity Firms; Group to Invest $122 Million in Largest Independent Risk Management Firm NEW YORK --(Business Wire)-- June 15, 2004 -- RiskMetrics Group, the world's largest independent financial risk management firm, today announced that a group of private equity investors led by Spectrum Equity Investors has closed on an agreement to recapitalize the company. Under the terms of the recapitalization, Spectrum Equity Investors and General Atlantic Partners along with Technology Crossover Ventures will invest a total of $122 million.Recognizing the extraordinary growth in the market for financial risk management products and services, this group of investors was drawn to RiskMetrics Group for its industry-leading methodology and its wide range of service offerings for both institutional and retail clientele. The transaction provides liquidity to selling shareholders while enabling the company to continue to invest and serve customers with leading-edge solutions. "The last several years have taught investors that risk is the most important component in every allocation decision," said RiskMetrics Group CEO Ethan Berman. "As a company, we've devoted ourselves to making those decisions better informed. It is gratifying to know that we have the support to continue to forge new ground in the service of that goal." "RiskMetrics Group is the leading provider of risk analytics to blue-chip financial institutions, and more recently has established itself as the market leader for hedge fund and other alternative investment managers - in effect, the equivalent of a ratings agency for complex securities," said William P. Collatos, Founder and General Partner of Spectrum Equity Investors. "This investment reflects our confidence in the strength of the management team and the quality of the products, as demonstrated by the company's growing number of marquee clients. We are very happy to include RiskMetrics Group among our portfolio of information services companies." Rene Kern, a Partner with General Atlantic Partners, said, "We are very pleased to have become investors in RiskMetrics Group, a recognized leader in providing innovative and highly specialized risk management solutions to the asset management, banking and hedge fund industries. As active investors, we look forward to a productive long term relationship working closely with RiskMetrics Group to support and enhance the company's continued growth both domestically and internationally." "RiskMetrics Group is the clear leader in the financial risk management market and the management team has demonstrated a solid knowledge of the sector by continuing to enable customers to accurately measure and manage their risk," said Rick Kimball, co-founding general partner of TCV. "We are impressed with the company's roster of customers and believe RiskMetrics Group continues to set the standard for the financial risk management market." Spun-out of JP Morgan in September of 1998, RiskMetrics Group has been growing at a compound annual rate of 65% over the last three years, and is strongly profitable. The new investment will allow the firm to rapidly advance its strategy of delivering a wide range of middle office services - such as risk management, data management and risk reporting - to asset managers, banks, corporate treasuries, hedge funds, insurance companies, pension funds and regulators. RiskMetrics allows users to measure and manage risk, and to communicate that risk to clients, investors, shareholders, managers and regulators. Its clients comprise more than 600 of the world's leading institutions, including nine of the 10 largest financial institutions, half of the world's central banks, hedge funds, companies in high-tech and consumer goods, and asset managers managing from $100 million to $300 billion in assets. About RiskMetrics Group RiskMetrics Group provides financial analytics and wealth management solutions to hundreds of financial institutions, corporations and central banks worldwide. Since 1994, RiskMetrics Group research has set the standard for financial risk management. RiskMetrics Group analytics, data and services enable users to measure and manage risk, and to communicate that risk to managers, clients, investors, shareholders and regulators. Formerly a division of JP Morgan, RiskMetrics Group became an independent company in 1998. The company is headquartered in New York City, with seven offices worldwide, including London, Tokyo and Singapore. About Spectrum Equity Investors Spectrum Equity Investors is a private equity firm specializing in investments in the media, communications, entertainment, and information services industries. The firm manages $3 billion of capital and invests throughout North America and Western Europe. The firm's investment activities are focused on portfolio companies with enterprise values in excess of $100 million, with demonstrated product and service franchises within its core industries. Spectrum makes both minority and majority investments to help management teams achieve liquidity, acquire new companies, or grow organically. Spectrum maintains offices in Boston and Menlo Park. www.spectrumequity.com. About General Atlantic Partners General Atlantic Partners, LLC, is one of the world's leading direct investment firms focused on investing globally in companies providing or using IT in ways that significantly transform the value proposition. The firm was founded in 1980 and has over $5 billion in capital under management. The firm is distinguished within the investment community by its deep experience and expertise in information technology, its global perspective and worldwide presence, its long-term approach to investments, and its commitment to provide sustained strategic assistance for its portfolio companies. General Atlantic has nearly 65 professionals among its 130 employees worldwide with offices in Greenwich, New York, Palo Alto, Washington, D.C., London, Dusseldorf, Singapore, Tokyo, Mumbai, Hong Kong, and Sao Paulo. See www.gapartners.com for additional information. About TCV TCV is a leading provider of growth capital to technology companies, providing funds to expansion, late-stage private, and public companies throughout North America. Founded in 1995, with $3.3 billion under management, the firm has 8 partners and is headquartered in Palo Alto, California. www.tcv.com |
