Goldman Sachs Asset Management said Tuesday it will acquire Dwight Asset Management, a stable value money manager, from Old Mutual Asset Management, according to a GSAM news release.
Terms of the deal were not disclosed.
GSAM made the acquisition to increase its defined contribution presence, the news release said.
The news release said the transaction should be completed during the second quarter of 2012.
GSAM began talking to Old Mutual about Dwight last fall, Andrea Raphael, a spokeswoman for GSAM, said in an e-mail. Zach Kouwe, a spokesman for Old Mutual, declined to comment.
Industry sources told Pensions & Investments on Oct. 17 that Old Mutual put Dwight on the block in September.
“Many of our clients are focused on stable value as an important asset class for DC plans, and Dwight has been an innovator in this space,” Eric S. Lane and Timothy J. O'Neill, co-heads of the investment management division at Goldman Sachs, said in the news release.
Selling Dwight Asset Management “will free up capital to redeploy into our global distribution and asset management franchise,” Peter L. Bain, Old Mutual's CEO, said in the same news release. “We remain committed to building our multiboutique business around long-term, institutionally driven, active asset management.”
Dwight provides fixed-income investment management services for institutional clients. Dwight had a total of about $42 billion in assets under management and advisement as of Dec. 31, the news release said. GSAM had a total of $828 billion in assets under management as of the same date, the release said.
GSAM's defined contribution investment-only business has $23 billion in assets under management, Ms. Raphael wrote.