Alliance Capitals $3.5 billion acquisition of Sanford C. Bernstein has the approval of industry observers.
Generally, its a positive move for both parties, said Cerulli Associates Managing Director Peter Starr, adding the purchase will help boost Alliances institutional strengths.
Tom Pipich, investment consultant at Buck Consultants, said the business aspects of the deal might take precedence over the investment aspects.
It seems a little out of character for one firm (Alliance) to say that we believe so deeply in our own investment philosophy that we have gone out and acquired someone that is the polar opposite of what we believe, he said. You have a clearly identified growth manager buying a clearly identified value manager.
In addition, he said, Bernsteins fixed-income capabilities could provide a complement to Alliances fixed-income offerings.
Following the acquisition, Alliance Capital will have $475 billion in assets under management.
The transaction is expected to close in the fourth quarter.