Affiliated Managers Group will acquire a majority stake in Aston Asset Management, a provider of subadvised investment products to the mutual fund and managed accounts markets, according to spokeswomen for both firms.
At the time of the deal's close, expected in the second quarter of 2010, AMG will issue about 1.75 million new shares in exchange for the outstanding equity of Aston's parent, Highbury Financial, confirmed AMG spokeswoman Laura O'Brien. At AMG's midday share price today, the purchase price would come to roughly $113 million.
Aston is the principal adviser to the Aston Funds, a family of 24 subadvised, no-load mutual funds with combined net assets of roughly $6 billion as of Sept. 30. Among those funds are the $2.7 billion Aston/Montag & Caldwell Growth, $1 billion Aston/Optimum Mid-Cap Blend and the $798 million Aston/TAMRO Small Cap funds.
In an interview, Stuart Bilton, Aston's chairman and CEO, said his firm has invested heavily in new products, with roughly 10 of the fund family's 24 fund lineup coming to market over the past few years, setting the stage for strong growth as those funds establish three- to five-year track records.