Affiliated Managers Group on Wednesday announced it will acquire a majority equity interest in domestic large-cap stock manager Yacktman Asset Management.
Terms weren't disclosed.
Apart from AMG's March 20 investment in Veritable LP, its first wealth management target, the holding company's purchase of a controlling stake in Yacktman will be its first in a money manager since September 2010.
Yacktman has about $17 billion in assets under management, including two mutual funds: the $7.5 billion Yacktman Fund and the $5.9 billion Yacktman Focused Fund.
According to AMG's news release, Yacktman also serves a number of institutional investors and high-net-worth individuals through separately managed accounts and subadvisory mandates. The amount under management for institutions could not be learned by deadline.
AMG has been more focused in recent years on bolstering its lineup of managers of alternative or overseas assets than on adding domestic equity capabilities at a time when risk-conscious investors have been trimming their U.S. exposure. Jay C. Horgen, Affiliated's CEO, noted that domestic large-cap equity managers who hug their benchmarks have been the ones suffering of late, while Yacktman, which manages concentrated portfolios, has continued to thrive and gain market share."
Donald Yacktman, Yacktman's founder, said in the AMG release: “Our partnership with AMG enables us to address long-term succession planning needs through an equity incentive program which provides liquidity to the current partners and to future generations, fosters stability within the organization, and, most importantly, offers significant support to continue the business momentum we have established.”
Yacktman's management partners will continue to hold a “substantial portion” of the equity in the business, the news release said.