Proxy adviser Glass Lewis is acquired

Glass Lewis announced recently that Peloton Capital Management and Stephen Smith have acquired them from Ontario Teachers’ Pension Plan Board and Alberta Investment Management Corporation, a government owned investor of public sector pension funds.

No financial amounts were disclosed in this deal. Peloton Capital Management is a private equity firm whose primary interest is investing in services companies in the Healthcare, Financial and Consumer sectors in North America. Stephen Smith is a prominent investor who is CEO of Canada’s largest non-bank mortgage lender.

The new owners are expected to support to Glass Lewis’ international expansion ambitions. They also find particular value in the proxy adviser’s expertise in ESG and how these factors can be incorporated to improve corporate governance internationally through their global reach.

The deal follows the successful sale of competitor ISS from a private equity firm to Deutsche Börse AG (see HERE). The value realised by Genstar, the PE owner, suggests that there is much value to be had transforming a proxy adviser platform into that of a governance data intelligence provider to broader markets.

The press release can be found here (see HERE).

© Guerdon Associates 2024
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