ABN AMRO Asset Management will acquire International Asset Management, a hedge fund-of-fund manager with $2.6 billion under management, according to a news release. Financial terms were not disclosed. The deal will boost assets for ABN AMRO's hedge fund-of-fund business to about $4 billion, according to the news release. The acquisition supports ABN AMRO Asset's focus on midmarket clients and allows the firm to take a "step up quite quickly," said Frank Goasguen, global head of institutional sales for ABN AMRO Asset.
"We're on a path to grow and we've built a respectable product over the course of the past three years," Mr. Goasguen said. "But we came to the conclusion that to continue with an organic growth approach, it would take quite a lot of time."
All five IAM partners - Chairman Albert Fuss, Managing Director Anthony Forward, Director Alan Djanogly, Investment Manager Sue Heathcote and Operations Manager Toni King - will remain with the firm. Overall, IAM's 45 employees will be grouped with 15 ABN AMRO employees. The new team will be headquartered in London and will operate under the IAM name for now. IAM also has an office in New York, which will remain open.
"It is foreseeable that we will reduce a little bit from the total head count," Mr. Goasguen said, "but (staffing) cost was not an important element of the decision to acquire IAM."
ABN AMRO began searching for an acquisition target in mid-2005, he said. The transaction is due to close in the first quarter of 2006.
ABN AMRO manages about €173 billion ($209 billion) in total assets.
