F-Squared Agrees to Sell Its Operating Assets to Cedar Capital’s Subsidiary Broadmeadow Capital, LLC

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F-Squared Investments today announced that it has entered into an asset purchase agreement with Broadmeadow Capital, LLC, a wholly owned subsidiary of Cedar Capital, LLC.

F-Squared Investments (“F-Squared” or the “Company”) today announced that it has entered into an asset purchase agreement with Broadmeadow Capital, LLC (“Broadmeadow Capital”), a wholly owned subsidiary of Cedar Capital, LLC (“Cedar Capital”). Under the terms of the deal, Broadmeadow will acquire the intellectual property, investment strategies and substantially all of the investment contracts of F-Squared. The sale will allow F-Squared to ensure a smooth and quick transition of the business supported by a robust operating infrastructure.

To facilitate the sale, F-Squared has filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (the “Court”) [case # 15-11469]. F-Squared is seeking Court authorization to pursue the sale process on an expedited basis under Section 363 of the U.S. Bankruptcy Code. The proposed agreement with Broadmeadow Capital contemplates a Court-supervised auction process, which is designed to achieve the highest or otherwise best offer for the Company's assets. The agreement with Broadmeadow Capital sets the floor, or minimum acceptable bid, and is subject to Bankruptcy Court approval and certain other conditions. A final sale approval hearing is anticipated to take place shortly after the auction with the anticipated closing contingent on the approval of the Court and the consent of F-Squared’s clients.

“We are pleased to have attracted, in Cedar Capital and Broadmeadow Capital, firms that have a deep understanding and established presence in asset management and investment advisory services. This transaction will allow clients to continue receiving industry-leading service and provide them with access to complementary, broad investment strategies,” said F-Squared Chief Executive Officer Laura Dagan. “Broadmeadow Capital shares AlphaSector strategies’ research-driven quantitative investment approach. Broadmeadow Capital will preserve the continuity of certain F-Squared employees, including investment, research and client relationship professionals, who will join Broadmeadow Capital in connection with the transaction.”

Broadmeadow Capital is a quantitative asset manager, with offices in Boston, which seeks to help investors manage exposures to global equity, fixed income and commodity markets while incorporating hedging techniques based on changes in volatility and investor behavior. Broadmeadow’s parent company, Cedar Capital, delivers innovative investment solutions, primarily to asset managers and financial advisors, through its partner network, providing a single point of access to multiple, diversified and unique investment strategies. Cedar Capital has strong capital resources with the backing of two premier financial services private investment firms, FTV Capital and LLR Partners.

F-Squared will continue operating in the ordinary course throughout the sale process. The Company has filed customary motions with the Court to continue providing employees their usual pay and benefits on a timely basis. The Company will continue to pay suppliers in full under normal terms for goods and services provided after July 8, 2015.

Additional information about this process, as well as court filings and other documents related to the reorganization proceedings, is available through F-Squared’s claims agent, BMC Group LLC, at: http://www.bmcgroup.com/restructuring/clients.aspx.

About F-Squared Investments

F-Squared Investments is an asset manager that provides investment indexes and strategies based on its AlphaSector® and Applied Dynamic Replication capabilities. The firm seeks to provide an investment approach that protects clients in down markets and helps them participate in up markets. F-Squared focuses on delivering innovative investment solutions to help meet investor’s expectations and financial goals. The firm serves clients in the advisor, institutional, retail and retirement markets. F-Squared Investments is based in Wellesley, MA and Ewing, NJ.

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Samantha Cohen
Teneo Holdings
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