ABN AMRO is acquiring Alleghany Asset Management from its parent company, Alleghany Corp., for about $825 million. ABN AMRO also will provide retention payments and other compensation incentives to persuade key Alleghany Asset employees to remain with the company. Alleghanys $45 billion under management will boost ABN AMROs global assets under management by 40%, to $155 billion; and Alleghanys 13 mutual funds will provide ABN AMRO with its first entry into the U.S. mutual fund market.
ABN AMRO also will gain Alleghanys five money management subsidiaries as well as Alleghanys 40% share in Veredus Asset Management.
The Alleghany subsidiaries will be combined with ABN AMRO Asset Management within the private clients and asset management unit of ABN AMRO, said a spokesman from ABN AMRO headquarters in Amsterdam.