Bank of Ireland Group will acquire a 71.5% stake in U.S. hedge fund-of-funds manager Guggenheim Alternative Asset Management for about $184 million in cash. The deal is expected to close at the end of January. The exact sale price will be based on Guggenheim's business performance as of April 1, 2006, according to a Bank of Ireland statement. Senior management of Guggenheim will hold an 11% ownership stake, and its parent company, Guggenheim Partners, will continue to hold 17.5% of the firm. Bank of Ireland will have an option of acquiring a larger stake in future, according to the statement.
Guggenheim Alternative manages $2.8 billion, split evenly between institutional and high-net-worth investors, said Armel Leslie, a spokesman for the firm. The company will continue to operate autonomously under the Guggenheim Alternative Asset Management name. Loren M. Katzovitz, president and managing partner; Patrick T. Hughes, managing partner; and other employees will retain their titles and functions, Mr. Leslie said.
Putnam Lovell NBF Securities was Bank of Ireland's adviser; Freeman & Co. represented Guggenheim Partners.