Rothschild HDF Investment Solutions ("RHIS") and Topwater Capital, a division of Leucadia Asset Management LLC, announced today that Rothschild and Topwater Capital have entered into an arrangement pursuant to which Rothschild will become the exclusive European capital provider for Topwater Capital's first-loss investment strategy. Under this arrangement, European investors interested in investing with Topwater Capital may only do so through one or more entities managed by Rothschild.

Marc Romano, CEO of RHIS, commented: "The arrangement with Topwater is a demonstration of Rothschild's commitment to deliver innovative investment solutions with the client in mind. Whether homegrown or through value-add partnerships such as the one with Topwater, innovating to better address client needs is at the heart of our mission. Topwater's first-loss investment strategy is a progressive take on the alignment of investor/manager interests and we are pleased to grant our clients access on an exclusive basis."

Rothschild is one of the world's largest independent financial advisory groups. Headquartered in Paris, Rothschild & Cie Gestion provides asset management services to European clients, external distributors and Independent Financial Advisors. Rothschild & Cie Gestion offers, through its subsidiary RHIS, open architecture investment solutions in all assets classes, packaging investments to meet the specific needs of investors, including commingled or dedicated funds, mandates and portfolios of managed accounts.

Bryan Borgia, who is a Co-Head of Topwater Capital with Travis Taylor, commented: "We are pleased to have entered into this exclusive arrangement with Rothschild. We have been extremely impressed with the Rothschild team, investment approach, and understanding of our business. This exclusive arrangement with Rothschild comes at a favorable time, as we continue to see ample opportunities to allocate capital to high quality investment managers. We believe that Rothschild, in addition to being a quality investor, will add a great deal of value to our investment program, and we look forward to working closely together."

Topwater Capital is a division of Leucadia Asset Management LLC, a wholly-owned subsidiary of Leucadia National Corporation (NYSE:LUK), a diversified holding company. Topwater Capital is managed by Bryan Borgia and Travis Taylor, who pioneered the first-loss model of fund investments and have been sourcing, structuring, funding and risk monitoring first-loss managed accounts since 2002.

Topwater Capital
Mr. Travis Taylor, 203-604-1116