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Asset Management Finance completes follow-on investment in FX Concepts

Wednesday, June 16, 2010
Opalesque Industry Update – Asset Management Finance LLC (“AMF”) announced today that it has made a follow-on investment in International Foreign Exchange Concepts, L.P., (“FX Concepts"), one of the world’s leading privately-held currency hedge funds.

To date, AMF has made investments in eighteen asset management firms in the U.S., U.K., and Australia. This transaction represents AMF’s first follow-on investment. AMF’s original investment in FX Concepts was completed in November 2006.

Founded in 1981, FX Concepts was one of the first independent currency advisors. FX Concepts is a pioneer in the use of quantitative analysis, model-building, and technical forecasting to manage foreign currency trading and risk. Under the terms of the Revenue Share Interest (“RSI”) agreement, AMF provided passive capital in exchange for a certain minority percentage of FX Concepts’ revenues over a set time period.

"FX Concepts has been one of the leading names in currency management and research for well over two decades," said Brian Finn, chief executive officer of AMF. "We are honored that they have selected AMF once again to fulfill their long-term capital planning requirements."

Since moving into investment management in 1987, FX Concepts has grown rapidly. Its assets under management as of May 31, 2010 are approximately $7.7 billion.

"Working with AMF will allow us the flexibility to effectively plan for the long-term with respect to our management planning and succession," said John R. Taylor, Jr., chairman and founder of FX Concepts. "We consider the ability of our employees to be our greatest strength and believe our partnership with AMF will allow us to leverage that strength in both the near-term and in the future." Mr. Taylor recommitted himself to a long-term employment contract with the firm as part of the transaction.

AMF, through a variety of revenue sharing and direct equity investments, is a leader in providing passive minority capital to asset management firms to facilitate organizational liquidity initiatives including generational equity transfers, management buyouts, strategic growth opportunities, and acquisitions.

"Our investment in FX Concepts was one of our earliest,” said Barry Klayman, chief operating officer of AMF. "A follow-on investment is a strong endorsement of the AMF business model. We are extremely appreciative of the opportunity to expand our relationship with FX Concepts. We see substantial opportunity for serial transactions with our portfolio companies and hope this will be the first of many of its kind."


About FX Concepts
FX Concepts is a global investment management and research firm specializing in foreign exchange and interest rate risk management. The company has approximately $7.7 billion under management as of May 31, 2010 in currency overlay and absolute return programs for institutional clients worldwide. FX Concepts has extensive experience trading currencies and derivatives in both the developed and the emerging markets. Established in 1981 by its current chairman, John R. Taylor, Jr., FX Concepts is headquartered in New York with offices in London, Singapore, Sydney, Bermuda, and Switzerland and representatives in Tokyo. For more information, please visit www.fx-concepts.com.

About AMF
AMF provides flexible capital to a broad range of investment firms including wealth managers, institutional asset managers, alternative asset managers, and private equity firms seeking funding for recapitalizations, growth initiatives, management buy-outs, acquisition financing, owner liquidity, and other strategic investment objectives. AMF makes minority investments designed to allow management to retain operational autonomy. Investors in AMF include Credit Suisse Group AG, Proctor NBF Capital Partners (through a subsidiary of National Bank Financial Inc.), Tokio Marine & Nichido Fire Insurance Co., Ltd., and AMF management. AMF is headquartered in New York with representatives in Boston and London. For more information, please visit www.AMFinance.com

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