Macquarie Capital Group agreed to acquire a 65% stake in core fixed-income manager Allegiance Investment Management, confirmed Allegiance CEO Mark Torline. Allegiance will be renamed Macquarie Allegiance Capital. Mr. Torline declined to provide terms of the deal, which is expected to close in the second quarter. Allegiance employees will continue to own the remaining 35%.
Macquarie will assist Allegiance with product development, distribution, operational and risk management capabilities. “It gives us a tremendous opportunity to partner with Macquarie to develop new and innovative products,” Mr. Torline said. Allegiance, which has $4.5 billion in assets under management, plans to expand into new fixed-income strategies once the deal closes. Mr. Torline declined to give more details.
Mr. Torline will remain CEO; also staying are Alliance CIO Bill Mawhorter and the rest of Allegiance’s staff. Louise Walker, a division director at the $54 billion Macquarie Funds Management Group in Sydney, will move to Allegiance’s Huntington Beach, Calif., office to lead the product management and marketing team.
