The Phoenix Cos. acquired the remainder of subsidiary Kayne Anderson Rudnick Investment Management, said Phoenix spokeswoman Alice Ericson. Phoenix, which acquired a 65% stake in the firm in 2002, purchased the remaining 35% from the firm's management at the end of September. Kayne Anderson Rudnick manages $9.6 billion in U.S. equities.
The move was part of Phoenix's strategy to completely own each of its seven investment subsidiaries, said Ms. Ericson, who added that Kayne Anderson Rudnick is the last Phoenix entity to become a wholly owned subsidiary. Phoenix will pay Kayne Anderson Rudnick's minority owners total consideration of $80 million over the next two years.
Richard Kayne, co-founder and CEO of Kayne Anderson Rudnick, and Ralph Walter, COO, will remain with the firm until the end of 2006, according to a news release. Allan Rudnick, president and CIO, was named CEO and will retain his current responsibilities. Stephen Rigali, chief marketing officer, was named executive vice president.