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Halcyon Asset Management LLC together with its affiliates (“Halcyon”) and Alternative Asset Management Acquisition Corporation (“AAMAC”) announced today that Halcyon will access the public equity markets through an acquisition by AAMAC. The new entity will be called Halcyon Management Inc. (“Halcyon Management”).

The transaction values Halcyon at approximately $974 million. Under the terms of the agreement, members of Halcyon entities will receive up to $505 million in cash and notes, and will retain LLC interests in Halcyon exchangeable into shares of AAMAC on a one-for-one basis. The terms also provide for the ownership of the Halcyon exchangeable interests to be adjusted upward contingent upon achieving certain stock price targets. Halcyon members will initially own approximately 43.6% of the fully diluted ownership interest of the new entity.

Partners of Halcyon entities will further align their interests with fund investors, reinvesting 75% of the after-tax cash proceeds in Halcyon funds, typically for three years, at full fees to the public stockholders. Halcyon’s partners will enter into lock-up and non-compete agreements, and their equity consideration will generally vest over five years.

The allure of blank checks “This transaction accomplishes AAMAC’s stated IPO objective: to find an alternative asset management firm that has a long track record of success,” said Michael Levitt, current Chairman of New York-based AAMAC. To financ......................

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