LAS VEGAS - Cannae Holdings, Inc. (NYSE:CNNE), an investment company actively managing a core group of operating companies, announced Monday that it will terminate its Management Services Agreement (MSA) with Trasimene Capital Management, LLC.
This move will take effect on July 2, 2024, and is part of a broader transition to internal management, which the company believes will align its management team more closely with shareholder interests.
Under the new terms, Trasimene will receive a fixed management fee of $7.6 million annually for three years and a $20 million termination fee, to be paid in three yearly installments starting July 2, 2024. After this period, no further fees will be paid to Trasimene. Starting from February 26, 2024, the firm will not accrue any additional management fees or carried interest on future investments by Cannae.
William P. Foley, II, who is currently the top shareholder of Cannae, will take on the role of Chief Executive Officer, Chief Investment Officer, and Chairman of the Board. Ryan Caswell will depart from Trasimene on the effective date and continue as President of Cannae under a new three-year employment agreement.
The company anticipates that these changes will marginally increase its Net Asset Value Per Share as of the effective date. Mr. Foley expressed optimism regarding the transition to internal management and the pursuit of joint investment activities with Jana Partners, which was announced the previous week.
The decision to wind down the MSA was unanimously recommended by the Related Person Transaction Committee of the Board and approved by all board members, excluding Foley and Massey, who recused themselves. The committee sought financial advice from Lazard (NYSE:LAZ) Frères & Co. LLC and legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP.
Cannae Holdings focuses on acquiring interests in and actively engaging in the management and operations of a variety of companies, with no set timeline for selling or disposing of its businesses. The termination of the MSA with Trasimene is part of the company's strategy to enhance value for its shareholders. This news is based on a press release statement from Cannae Holdings, Inc.
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