Guggenheim Partners today announced an agreement to acquire financial services firm Security Benefit Corp.
A group of investors led by Guggenheim will make an investment of about $400 million in Security Benefit, according to a joint news release from the two firms. Additional terms were not disclosed.
Among Security Benefit's businesses to be acquired by Guggenheim are Security Financial Resources, a retirement plan services provider targeting educational clients, and Security Global Investors and Rydex-SGI, which have a combined $22 billion in assets under management in separate accounts, mutual funds and ETFs, a Security Benefit spokesman confirmed in an e-mail response to questions.
Kris A. Robbins, chairman, president and CEO of Security Benefit, is retiring effective immediately, according to the release. Howard R. Fricke, who was president and CEO of Security Benefit from 1988 to 2000 and chairman from 1996 to 2007, will be interim chairman, president and CEO while Guggenheim seeks a permanent CEO and president for Security Benefit. Mr. Fricke had retired from Security Benefit in 2007.
Todd Boehly, managing partner and head of Guggenheim's credit investment management business, will serve as chairman following the close of the transaction, expected in the late second quarter or early third quarter.
Security Benefit will continue to operate separately and will retain its brand names “for the foreseeable future,” the spokesman wrote.
Guggenheim has been investment adviser for Security Benefit's general account since June 2009.