Ziegler Capital Management will acquire Lotsoff Capital Management, the firms announced Wednesday.
Terms weren't disclosed.
The two firms will combine their operations under Ziegler Capital, although their separate legal entities might exist for a time, Scott A. Roberts, president and CEO of Ziegler Capital, said in an interview.
Mr. Roberts will become president and CEO of the combined entity.
Ziegler has $2.6 billion in assets under management, consisting of $695 million in equity and $1.9 billion in fixed income. Lotsoff has $1.3 billion in assets under management, consisting of $488 million in equity, $769 million in fixed income and $28 million in alternatives or hedge funds.
Each firm's “products will stay the same and portfolio managers for those products will remain the same,” Mr. Roberts said. “We will combine the resources available to the portfolio managers and their teams. Client services and market teams will merge as one unit.”
Joseph N. Pappo, Lotsoff Capital CEO and senior portfolio manager for equity, “will continue to have a senior managing role and be managing director and senior portfolio manager on the equity side” at Ziegler, Mr. Roberts said.
Donald W. Reid, Lotsoff chief investment officer and senior portfolio manager, will become co-CIO of the equity group at Ziegler with Donald J. Nesbitt, currently the Ziegler equity group CIO. Paula Horn will remain CIO of fixed income at Ziegler.
Seymour N. Lotsoff, founder of Lotsoff Capital and adviser, and Mark S. Levey, also a Lotsoff adviser, are expected to continue their advisory roles at Ziegler, Mr. Roberts said.
The firms expect all their employees to remain with the combined entity, Mr. Roberts said. In all, Lotsoff has about 25 employees and Ziegler, about 20.
Lotsoff is owned by its management, which is expected to have a stake in Ziegler Capital, Mr. Roberts said. The amount of the stake is expected to be determined before the deal closes on June 10, Mr. Roberts said.
Ziegler is owned 49% by B. C. Ziegler & Co., an investment banking and financial services firm; 41% by Rizvi Traverse Management, a private equity firm; and 10% by its employees, Mr. Roberts said.
Neither firm used an investment bank for the deal.