Management will own 51%, and Rosemont, 49%. Other terms of the deal weren't disclosed.
Michael Skillman, CEO of Cadence Capital, said the transaction will allow Cadence to function as an independent investment entity run entirely by its internal management team. "A financial partner like Rosemont was clearly the best option for us," he said. "They understand the industry and the business, but they also understand our need to operate our investments autonomously."
As part of the agreement, Cadence Capital will manage $2.4 billion in four subadvised mutual funds for Allianz. Cadence currently manages about $3.5 billion in institutional separate accounts and $2.5 billion in mutual funds.