Portfolio
Legg Mason, Inc. (2009 – 2016 and 2019 – 2020)
Legg Mason, Inc. (“Legg Mason”) is an asset management firm offering equity, fixed income, liquidity management and alternative investment products to a global base of individual and institutional investors.
Second Investment (2019 – 2020)
Trian initiated its second investment in Legg Mason in the second quarter of 2019. On May 20, 2019, Legg Mason announced that Nelson Peltz and Ed Garden joined the board, effective immediately.
On February 18, 2020, Franklin Resources, Inc. (NYSE:BEN), a global investment management organization operating as Franklin Templeton, announced that it had entered into an agreement to acquire Legg Mason for $50 per share of common stock in an all-cash transaction. Both Nelson and Ed worked closely with other board members to create a strong contract.
Following Legg Mason shareholders’ approval of the acquisition on May 15, 2020, Trian monetized its entire stake in Legg Mason. The Franklin Templeton acquisition of Legg Mason was completed on July 31, 2020.
Trian voted its Legg Mason shares in favor of this transaction because it believed it offered an attractive valuation for Legg Mason’s shareholders. Trian also believed that the transaction will enable Legg Mason’s investment affiliates to remain at the forefront of an industry where scale is increasingly vital to success and to join Franklin Templeton, a highly respected financial services organization.
First Investment (2009 – 2016)
Trian announced its first investment in Legg Mason in August 2009. Nelson Peltz joined the Board of Directors in October 2009.
Over the course of Trian’s first investment in Legg Mason, the company returned $2 billion of capital to investors, cut over $150 million of corporate costs, upgraded its management team talent, and saw the return of positive fund flows.
In December 2014, Nelson Peltz stepped down from Legg Mason’s board, when Ed Garden joined the BNY Mellon Board. In April 2016, Trian sold substantially all of its position in Legg Mason to Shanda Group (“Shanda”), a Singapore-based global investing holding company and shortly thereafter sold the remainder of its position.
Sector: Financial
Company Website: http://www.leggmason.com