Case Study

RiskMetrics provides risk analytics and information processing to the global financial services community.

RiskMetrics addressed the risk management needs of large financial institutions through a proprietary, software-based risk assessment platform. Following a multi-year dialogue which included its spin-out from JP Morgan, Spectrum invested in Riskmetrics to accelerate its growth and build its organization as an independent, standalone company.

The company became the industry leader by building a data and analytics business alongside its core processing platform. At the time of acquisition by MSCI, the company had grown its client base to over 2,300 financial institutions and 1,000 corporations across 50 countries.

Senior Management and Board Recruitment

David Obstler was recruited as CFO and Arthur Levitt (former Chairman of SEC) joined the board.

M&A

Spectrum supported the company’s acquisition of Institutional Shareholder Services, a provider of corporate governance and proxy vote processing, and CFRA, a provider of forensic accounting research and services.

Customer Growth and Diversification

Over the course of Spectrum’s investment, RiskMetrics transitioned from a single product and customer focus to a large, global customer base and multi-product offering.

Operational Improvements

The company’s software delivery transitioned to 100% managed service/SaaS.

IPO and Strategic Sale

RiskMetrics went public in 2008 (NASDAQ: RISK) valuing the company at $1 billion and was subsequently acquired by MSCI for over $1.5 billion.

News

MSCI to Acquire RiskMetrics Group

MSCI will acquire RiskMetrics in a cash and stock transaction valued at $21.75 per share based on MSCI's closing price of $29.98 per share on Friday, February 26, 2010, or approximately $1.55 billion.

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Knut Kjaer to Become President of RiskMetrics

The appointment gives RiskMetrics and its proxy adviser unit a high-profile new voice when companies are under pressure to reassess their governance policies following the global financial crisis.

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RiskMetrics Group IPO on NYSE

RiskMetrics Group shares have been priced at $17.50 per share and will trade on the New York Stock Exchange under the symbol"RMG".

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RiskMetrics Group Acquires of Institutional Shareholder Services

ISS is the world's leading provider of corporate governance and proxy voting solutions to the institutional investor community. The combined company address multiple classes of interrelated risk.

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