Transactions


$400 million Investment

led investor group has acquired

led investor group has acquired

Financial advisor to Security Benefit

Financial advisor to Security Benefit

February 2010

Freeman & Co. Advises Security Benefit Corporation on $400mm Capital Investment and Acquisition by Guggenheim Partners
Date
February 2010
Industry
Asset Management, Insurance
Transaction
Sell-Side M&A
Deal Value
$400,000,000

Guggenheim-led investor group has acquired Security Benefit

February 16, 2010 (New York, NY) – Freeman & Co. congratulates its client Security Benefit Corporation on its announcement of an investment of approximately $400mm and acquisition by a Guggenheim Partners led investor group. The transaction represents the largest equity investment into a private insurance company since prior to 2007(1). Freeman & Co. initiated and acted as exclusive financial advisor to Security Benefit Corporation on this transaction.

Security Benefit’s four primary businesses will immediately benefit from continued capital investments in technology, product development and support as well as anticipated favorable improvements in the firm’s financial strength ratings.

Guggenheim Partners and Security Benefit began formally working together in June 2009 when Guggenheim became the investment advisor for Security Benefit’s general account.

Upon the close of the transaction, and following regulatory and policyholder approval for demutualization, Guggenheim Partners will control Security Benefit Corporation. It is also expected upon close, based on preliminary feedback from Standard & Poor’s, that Security Benefit Life’s credit ratings and outlook should improve, returning to investment grade over time. Security Benefit retains its network of offices and will continue to occupy its Topeka-based corporate headquarters.

The Boards of the Security Funds and the Rydex Funds have approved the new investment advisory agreements between the funds and their investment advisers that will be effective after completion of the transaction, subject to approval by each fund’s shareholders. Additional terms of the transaction were not disclosed. The transaction is expected to close in the late second quarter or early third quarter of 2010.