Affiliated Managers Group acquired a 5% stake in Value Partners Group for about $36 million from a group of that firm’s senior management owners, including Cheah Cheng Hye, Value Partners’ chairman and CIO.
The stake in the Hong Kong-listed value equity boutique is part of a strategic partnership in which the two firms will work on joint product development and strategic distribution opportunities, according to a statement from AMG.
In a telephone interview, Sean M. Healey, AMG’s president and CEO, called the deal — AMG’s first in the greater China region — “a very strategic investment for us,” even if its price tag “is not as large as other opportunities we’re working on.”
AMG often takes a controlling, majority stake in the money management firms in which it invests, although it has acquired minority stakes more recently in some alternatives-focused managers.
With joint product development opportunities and Value Partners’ “strong distribution relationships across the region,” today’s deal fits in with AMG’s general strategic focus on international expansion, Mr. Healey said. “We look forward to our partnership growing over time,” he added.
AMG joins Ping An Insurance (Group) of China as a strategic partner of Value Partners. Ping An, with roughly a 9% stake, is working with a Value Partners’ unit to develop exchange-traded funds. Value Partners’ managers own the bulk of the firm’s equity.
Value Partners currently oversees roughly $4.6 billion in client assets.