Metropolitan West Asset Management will become totally employee-owned, acquiring the one-third minority stake held by partner Metropolitan West Financial, said Scott Dubchansky, CEO of MetWest Asset. Terms of the transaction, expected to close in the first quarter of 2007, were not disclosed. Bryan Whalen and Mitchell Flack, both portfolio managers, along with Joe Hattesohl, CFO, will become partners of MetWest Asset, bringing the total number of active partners to 10.
The new ownership structure will give the fixed-income firm greater flexibility to increase ownership participation and create new partnerships, including subadvisory relationships, Mr. Dubchansky said. For now, there are no plans to hire staff, nor are there any partnerships in the works, he added.
MWAM had $18.2 billion in assets as of Oct. 3, which included $3 billion in net new accounts won since the start of the year in the firm's structured products and liability-driven investment strategy, among other offerings, Mr. Dubchansky said.