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SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/03/1997
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  The Company continues to explore additional international markets for its
Investment Management group clients. The Company intends to leverage its
organizational strength through selective acquisitions and the use of the
Company's international offices to take advantage of the accelerating interest
in international investment, to expand investment activity to new countries
and to strengthen its position as a leading intermediary for international
real estate capital flows.
 
  The trend among investors is to favor advisors that co-invest in newly
formed investment vehicles in order to better align the interests of the
investor and the advisor. The Company believes that co-investment will become
increasingly important in order for the Company to retain and expand its
competitive position. The Company also believes that its co-investment
strategy will greatly strengthen its ability to raise capital for new
investment funds over which the Company exercises discretionary investment
authority. After the Offering, the Company intends to accelerate its co-
investment activities. By increasing assets under management, the Company will
gain the opportunity to provide additional services related to the
acquisition, financing, property management, leasing and disposition of such
assets. Co-investment will also provide a vehicle for the Company to
participate in investment opportunities resulting from recovering real estate
markets. As of March 31, 1997, the Company had a net total investment of $15.8
million in 33 separate property or fund co-investments. The acquisition cost
of the properties acquired through these co-investments exceeds $1.0 billion.
Existing co-investments consist primarily of office and hotel properties
purchased within the last three years.
 
  Investment Management group operations are conducted with teams of
professionals dedicated to achieving client objectives. The portfolio managers
serve as the relationship coordinators for the Company's clients and are
responsible for drawing on all of the resources of the Investment Management
group (including research, investment services and specialty products) and the
rest of the Company's global resources. All investment decisions for private
market investments must be approved by the Company's five-member investment
committee. The investment committee approval process is utilized for both the
Company's discretionary investment funds and for all of its separate account
clients.
 
  The Company is generally compensated for investment management services for
private equity and debt investments based on initial capital invested, with
additional fees tied to investment performance above benchmark levels. The
term of the Company's advisory agreements varies by the form of investment
vehicle involved and the type of service provided. The Company's investment
funds have various lifespans, typically ranging between five and ten years,
with extension provisions based on a vote of investors. Separate account
advisory agreements generally have three year terms with "at will" termination
provisions.
 
  Public Equity and Debt Investments. The Company offers its clients the
ability to invest in either separate account or fund investment vehicles
focused on public real estate equity and debt securities. The Company
principally invests its clients' capital in domestic REIT equities and CMBS.
LaSalle Partners is also active in private placement investments in publicly
traded real estate companies and selected investments in private real estate
companies seeking capital to ultimately gain access to the public markets.
 
  The Company conducts its securities investment business through ABKB/LaSalle
Securities, which was formed by the Company in 1994 in connection with the
acquisition of ABKB's real estate advisory business. As of the end of 1994,
ABKB/LaSalle Securities served 21 clients and had approximately $630 million
of assets under management. As of March 31, 1997, ABKB/LaSalle Securities
served 35 securities investment clients with $2.5 billion of assets under
management. The Company is typically compensated by its securities investment
clients on the basis of the market value of assets under management with
increasing use of incentive fees tied to performance of investments above
benchmark levels.
 
GALBREATH ACQUISITION
 
  On April 22, 1997, the Predecessor Partnerships acquired Galbreath pursuant
to a Contribution and Exchange Agreement, of the same date, among the Employee
Partnerships, the Predecessor Partnerships, Galbreath, the former stockholders
of Galbreath and certain related entities (the "Contribution and Exchange
 
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