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$16.8 million UK Research and consulting 

Although the bulk of Realpoint’s revenue comes from buy-side clients, it now rates new issues too. Realpoint thus embraces a hybrid business model—issuer-paid ratings for new issues and investor-paid for surveillance ratings and research. And the CMBS market is recovering. After peaking in 2007 with $230 billion of new issues, the CMBS market went into free fall and had only $2 billion of new issues in 2009. The market recovered somewhat in 2010 with $11.6 billion of new issues. Industry forecasts for 2011 new issuance are as high as $50 billion. Realpoint rated a significant portion of new issues in 2010, and we think the rebound in the CMBS market bodes well for Realpoint in 2011. 

## Old Broad Street Research 

We bought Old Broad Street Research (OBSR) for $17 million in April 2010. OBSR is one of the most respected independent fund research and investment consulting firms in the UK. The OBSR fund rating is widely used by investors in the UK market. We already manage a similar business there, and this acquisition considerably strengthens our capabilities. 

Richard Downs and Richard Romer-Lee started OBSR in 1999 by buying out the research business within Buck Consultants, which was originally set up in 1994. They began publishing research on funds, launched the OBSR UK Fund Ratings in 2002, and later branched out to investment consulting. OBSR sells its services to financial intermediaries and institutions and is especially popular with financial advisors. Richard Downs decided to leave OBSR, but Richard Romer-Lee is staying and runs the business with Nigel Whittingham, a third OBSR partner. Richard Romer-Lee has a high profile in the UK market and is widely quoted in the media. We call him the “Don Phillips” of the UK. 

