In an agreement reached early this morning, LGT Asset Management is acquiring Chancellor Capital Management, and merging the two firms into a new entity with $80 billion under management.
The deal is worth up to $300 million in cash, contingent on asset growth during the next five years. LGT is a division of Liechtenstein Global Trust. The new firm will operate in North America under the name Chancellor LGT Asset Management and as LGT Asset Management elsewhere.
All executives will retain their previous responsibilities. Warren Shaw, Chancellor's CEO and CIO, will be global CIO after the merger; Chancellor President Penny Zuckerwise will be chief operating officer; Nina Lesavoy will be head of institutional client service and new business development. David Minella, LGT's president, will be named chairman of the board, replacing Chancellor Chairman Robert Wade, who is retiring. Christian Wignall will continue as chairman of LGT's global investment policy committee.