Legg Mason, Inc. (2009-2016)
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.
Trian was attracted to the strong cash flows and growth profile of the asset management industry in early 2009, and believed the market was over-penalizing Legg Mason for its outflows, and not sufficiently taking into consideration its improved investment performance, high free cash flow yield, and potential for significant margin upside.
Trian announced its position in Legg Mason in August 2009. Nelson Peltz joined the Board of Directors in October 2009. In May 2010, Legg Mason announced a major restructuring in line with Trian’s strategic initiatives for the business.
Over the course of Trian’s 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.
Company Website: http://www.leggmason.com