L&B Realty Advisors' senior executives acquired the firm from Old Mutual in a management buyout, said G. Andrews Smith, L&B chairman and CEO. Terms of the deal, which closed Aug. 31, were not disclosed. Mr. Smith and Daniel L. Plumlee, president and CIO, each acquired 50% of the firm, said Mr. Smith.
Ownership "is something we never had," he said. "Now having that that currency, so to speak, we hope to leverage off it and make it available to other senior executives."
Mr. Smith said he and Mr. Plumlee and Old Mutual didn't use financial advisers, borrowing or third-party investors to complete the deal.
Mr. Smith said he and Mr. Plumlee have tried to buy L&B since 1999, when the firm was owned by United Asset Management. "Quite frankly it took awhile" to close the deal, he said.
"We've always had daily control" over the business, which has $2.4 billion in assets under management, he said. "Now we have daily and long-term control over strategic planning we can put to the advantage of our clients."
He said 98% of the firm's clients have endorsed the deal; the other 2%, which are small clients, have not responded.
"This is the model investors want to see, where the manager goes home at night worried about those accounts" because he is a principal in the business, Mr. Smith said.