Sec Form 4 Filing - Lipsey William Louis @ Pzena Investment Management, Inc. - 2017-09-26

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FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
Lipsey William Louis
2. Issuer Name and Ticker or Trading Symbol
Pzena Investment Management, Inc. [ PZN]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
X __ Director _____ 10% Owner
X __ Officer (give title below) _____ Other (specify below)
Pres, Marketing/Client Srvc
(Last) (First) (Middle)
C/O PZENA INVESTMENT MANAGEMENT, INC., 320 PARK AVENUE, 8TH FLOOR
3. Date of Earliest Transaction (MM/DD/YY)
09/26/2017
(Street)
NEW YORK, NY10022
4. If Amendment, Date Original Filed (MM/DD/YY)
6. Individual or Joint/Group Filing (Check Applicable Line)
__ X __ Form filed by One Reporting Person
_____ Form filed by More than One Reporting Person
(City) (State) (Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Class B common stock, par value $0.000001 ( 1 ) 09/26/2017 G( 2 ) V 75,000 D $ 0 3,979,836 I Pzena Investment Management, LP ( 7 )
Class B common stock, par value $0.000001 ( 1 ) 12/22/2017 G( 2 ) V 150,000 D $ 0 3,829,836 I Pzena Investment Management, LP ( 7 )
Class B common stock, par value $0.000001 ( 1 ) 12/31/2017 A 49,875 A 3,879,711 ( 4 ) I Pzena Investment Management, LP ( 7 )
Class B common stock, par value $0.000001 ( 1 ) 1,271,420 I By trust
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(MM/DD/YY)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Class B Units ( 3 ) ( 3 ) 09/26/2017 G( 2 ) V 75,000 ( 2 ) ( 2 ) Class A common stock, par value $0.01 75,000 $ 0 3,979,836 I Pzena Investment Management, LP ( 7 )
Class B Units ( 3 ) ( 3 ) 12/22/2017 G( 2 ) V 150,000 ( 2 ) ( 2 ) Class A common stock, par value $0.01 150,000 $ 0 3,829,836 I Pzena Investment Management, LP ( 7 )
Class B Units ( 3 ) ( 3 ) 12/31/2017 A 49,875 ( 5 ) ( 6 ) ( 5 ) ( 5 ) Class A common stock, par value $0.01 49,875 ( 5 ) ( 6 ) 3,879,711 ( 4 ) I Pzena Investment Management, LP ( 7 )
Phantom Class B Units ( 8 ) ( 9 ) ( 8 ) ( 9 ) 12/31/2017 D 49,875 ( 5 ) ( 5 ) ( 5 ) Class B Units 118,859 ( 8 ) ( 8 ) ( 9 ) 118,859 ( 8 ) D
Class B Units ( 3 ) ( 3 ) ( 3 ) ( 3 ) Class A common stock, par value $0.01 1,271,420 1,271,420 I By trust
Reporting Owners
Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Lipsey William Louis
C/O PZENA INVESTMENT MANAGEMENT, INC.
320 PARK AVENUE, 8TH FLOOR
NEW YORK, NY10022
X Pres, Marketing/Client Srvc
Signatures
Joan F. Berger, as attorney-in-fact for William L. Lipsey 01/03/2018
Signature of Reporting Person Date
Explanation of Responses:
( 1 )Each holder of a Class B Unit of Pzena Investment Management, LLC (the "Operating Company") is also issued one share of Pzena Investment Management, Inc.'s (the "Issuer") Class B common stock, par value $0.000001 per share, in exchange for the par value thereof. Holders of Class B common stock are not entitled to participate in any dividends or other distributions made by the Issuer to holders of its capital stock, except for the right to receive the par value thereof upon the Issuer's liquidation or dissolution.
( 2 )This transaction involved a charitable gift of securities by the Reporting Person to the Fidelity Investments Charitable Gift Fund.
( 3 )Represents units of the Operating Company that were reclassified as "Class B Units" of the Operating Company on a one-for-one basis in connection with the amendment and restatement of the Operating Company's operating agreement as of October 30, 2007 (as amended from time to time, the "Amended Pzena LLC Agreement"), among the Issuer, as the Managing Member of the Operating Company and the holder of certain units of the Operating Company, and the holders of such reclassified units of the Operating Company. Pursuant to the Amended Pzena LLC Agreement, each Class B Unit is exchangeable for a share of Class A common stock of the Issuer subject to the timing and volume limitations set forth in the Amended Pzena LLC Agreement.
( 4 )This number includes 413,221 of Delayed Exchange Class B Units and 3,466,490 Class B Units.
( 5 )Related to the vesting of the Reporting Person's mandatory deferral of his Restricted Amount pursuant to Section 5 of the Pzena Investment Management, LLC Amended and Restated Bonus Plan, as further amended (the "Bonus Plan") as follows: 30,762 Delayed Exchange Class B Units associated with the Reporting Person's 2015 deferred compensation and 19,113 Delayed Exchange Class B Units associated with the Reporting Person's 2016 deferred compensation.
( 6 )These Delayed Exchange Class B units have the right to receive dividend payments, however, they are not eligible for exchange pursuant to the Exchange Rights of Class B Members (Exhibit B to the Amended Pzena LLC Agreement) until seven years after the vesting date, at which time they will be 100% exchangeable for shares of the Issuer's Class A common stock (subject to the timing set forth in the Exchange Rights Agreement). These Class B units do not carry any rights associated with the Issuer and Operating Company's Tax Receivable Agreement.
( 7 )On January 1, 2016, pursuant to the Amended and Restated Agreement of Limited Partnership ("LPA") of Pzena Investment Management, LP ("PIM LP"), dated as of the same date, the Reporting Person became a limited partner of PIM LP and contributed to PIM LP his holdings of (i) Class B Units of the Operating Company and (ii) Class B common stock of the Issuer in order to receive a corresponding number of limited partnership interests in PIM LP. Pursuant to the LPA, whenever a Class B Unit is issued to the Reporting Person, the Reporting Person will be deemed to immediately and automatically contribute such Unit and related Class B common stock, to PIM LP and PIM LP will concurrently issue to him a corresponding limited partnership interest. Pursuant to the LPA, each limited partnership interest in PIM LP will be cancelled upon redemption by the Reporting Person for Class B Units and related Class B common stock subject to the terms of the LPA. The Issuer is the general partner of PIM LP.
( 8 )Originally issued in connection with the Reporting Person's mandatory deferral of his 2015 and 2016 Restricted Amount pursuant to Section 5 of the Bonus Plan. On December 31, 2017, the following vested: 30,762 Delayed Exchange Class B Units associated with the Reporting Person's 2015 deferred compensation and 19,113 Delayed Exchange Class B Units associated with the Reporting Person's 2016 deferred compensation. The balance of the Reporting Person's mandatory deferral of his 2015 and 2016 Restricted Amount is 118,859 Phantom Delayed Exchange Class B units.
( 9 )These Phantom Class B units will vest, and become Delayed Exchange Class B Units of the Operating Company, in four equal annual installments, beginning on the first anniversary of the mandatory deferral date for which each such Phantom Class B unit relates, subject to the terms and conditions set forth in the Bonus Plan. When these Delayed Exchange Class B units vest they will have the right to receive dividend payments, however, they are not eligible for exchange pursuant to the Exchange Rights of Class B Members (Exhibit B to the Amended Pzena LLC Agreement) until seven years after the applicable vesting date, at which time they will be 100% exchangeable for shares of the Issuer's Class A common stock (subject to the timing set forth in the Exchange Rights Agreement). These Class B units do not carry any rights associated with the Issuer and Operating Company's Tax Receivable Agreement.

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