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PennyMac Financial Services, Inc. Announces Proposed Private Offering of Additional 5.375% Senior Notes

PennyMac Financial Services, Inc. Announces Proposed Private Offering of Additional 5.375% Senior Notes

WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–Oct 14, 2020–

PennyMac Financial Services, Inc. (NYSE: PFSI) (the “Company”) today announced that it intends to offer an additional amount of its 5.375% Senior Notes due 2025 (such additional amount, the “New Notes”). The New Notes will be issued under the indenture governing the Company’s $500 million aggregate principal amount of 5.375% Senior Notes due 2025 issued on September 29, 2020 (the “Existing Notes”). The New Notes, if issued, will be treated as a single series with the Existing Notes and will have the same terms as the Existing Notes, other than with respect to the date of issuance and the issue price.

The Company intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of the Company’s existing secured warehouse borrowings. The offering is subject to market conditions and other factors. The offering will be made solely by means of a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons pursuant to Regulation S under the Securities Act.

The New Notes have not been and are not expected to be registered under the Securities Act or under any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons absent an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc.

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The Opportunities And Challenges Of Private Market Investing

The Opportunities And Challenges Of Private Market Investing

By Anna Davies

If you have a portfolio of stocks, bonds and other public assets, you may be intrigued by private market investing. Private market investing—a phrase often used interchangeably with private equity, venture investing and direct lending—offers robust opportunity, said Jay Karpen, investment manager at Whittier Trust.

“Companies are staying private longer and are going public at larger sizes than they were a decade ago,” he said. “Because of that, we’re seeing more investors who want to participate in the private markets.”

But while it may be easier than ever to participate in private markets, these investments require a different mindset and strategy than investing in public assets. “There’s more risk due to less disclosure combined with asymmetric information, illiquidity, execution challenges and manager risk,” said Karpen, adding that connections to opportunities, extensive due diligence and access to industry experts is essential.

Here are five tips to consider when you’re adding private market investments to your portfolio. 

An Extension Of Traditional Asset Classes 

Instead of thinking of private market investments as a brand new type of investment, consider it an extension of traditional asset classes, said Karpen. 

“Venture and growth equity have similar characteristics to small and mid-cap equities, private equity buyout is similar to large cap and direct lending is similar to fixed income markets,” said Karpen. 

That said, private market investing does bring additional considerations for investors. For one, the investment is illiquid, they are loosely regulated and there are often fees associated with private market investments. 

“You should expect to be compensated for these risks, otherwise it may not be worth it,” said Karpen.

The Right Partner Is Essential 

Since these investments are illiquid, and private equity vehicles generally require a large financial commitment, it’s important to take the time to understand the investment partnership,

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Alllworth Financial Private Equity Sale Expected Soon

Alllworth Financial Private Equity Sale Expected Soon


Sarinya Pinngam/Dreamstime

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The sale of Allworth Financial is heating up with a winning bidder expected soon, according to four banking and private-equity executives.

The auction has narrowed to three private equity firms; final bids were due last week, Oct. 6, two of the sources said.

Raymond James

(ticker: RJF) and

Moelis

(MC) are advising on the process, people said.

Allworth, which is owned by Parthenon Capital, is expected to sell for roughly $750 million to $800 million, one of the people said.

Allworth is an RIA aggregator that buys up smaller wealth managers. The Sacramento firm scooped up Capstone Capital in May, Houston Asset Management in April and, in October, it bought Retirement Advisors of America. Allworth, in May, had roughly $8 billion of assets under management, according to a statement.

Parthenon invested in Allworth in 2017 when the firm was known as Hanson McClain Advisors. Parthenon, of Boston and San Francisco, invests in financial services, health care services and business services. The private-equity firm is investing out its sixth flagship fund which raised $2 billion in December.

The Allworth sale is the latest in the wealth and asset management space. Last week,

Morgan Stanley (MS)

shocked many when it agreed to buy asset manager Eaton Vance (EV) for $7 billion. The sale is expected to set off more consolidation. “If

Eaton Vance

is selling— they’re considered one of the strong companies—then that tells you the mediocre and bad companies are selling,” one banker said.

Private-equity firms have been frequent investors of wealth managers. Hellman & Friedman owns Edelman Financial Engines, while TA Associates acquired Wealth Enhancement Group from Lightyear Capital in 2019. (TA and Genstar Capital own Orion Advisor Solutions.) GTCR bought a minority stake of CapTrust in June. Genstar and Lovell Minnick Partners sold a minority

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