Phoenix Investment Partners Ltd., Hartford, Conn., will acquire the retail mutual fund and closed-end fund business of The Zweig Group, New York.
Total assets under management were approximately $4.4 billion as of Nov. 30. The transaction does not include the Zweig-DiMenna partnerships and offshore fund businesses.
The terms involve Phoenix paying $135 million at closing and up to an additional $29 million in the three-year period afterward, depending on revenue growth. The deal is subject to the approval of Zweig mutual fund and closed-end fund shareholders, which is expected in the first quarter.
The Zweig Group has signed a servicing agreement with Phoenix for a minimum of three years and will essentially play the role of consultant to the division, said Barbara McLaughlin, a spokes-woman for Phoenix. Zweig managers will continue to manage the funds they have in the past and investment strategy will not change. Martin E. Zweig, chief executive officer of The Zweig Group, will continue to be responsible for asset allocation within the investment strategies.
The Zweig Fund Group consists of the Zweig Series Trust, a family of seven mutual funds, and the Euclid Market Neutral Fund; two publicly traded closed-end funds, the New York Stock Exchange-listed Zweig Fund and Zweig Total Return Fund; and several subadvised portfolios.
Phoenix Investment Partners was represented by Roberto de Guardiola of Putnam, Lovell, de Guardiola and Thornton. Zweig was represented by Merrill Lynch.
