Legg Mason sold Private Capital Management, a value equity subsidiary based in Naples, Fla., to PCM management.
Terms were not disclosed, said Mary Athridge, Legg Mason spokeswoman.
Private Capital Management managed $1.1 billion as of Dec. 31 for institutional and high-net-worth investors, according to PCM's website. It has been owned by Legg Mason since 2001.
The agreement was reached in the second quarter, according to a transcript of a quarterly earnings call Thursday with Joseph Sullivan, Legg Mason CEO and president.
No formal announcement was made, Ms. Athridge said. Chad Atkins, PCM's chief compliance officer, could not be reached for comment by press time.
Legg Mason, which now has eight investment subsidiaries, will take a $3 million charge in connection with the sale, Mr. Sullivan said in the earnings call. The deal should be closed by the end of September.
In the earnings call, Mr. Sullivan would not say if other affiliates would also be sold. “It is consistent with what I've said in the past, which is we're not going to be speculative or kind of discuss prospective thoughts that we may have on other smaller, non-scale affiliates, non-strategic or subscale affiliates,” he said. “But we are working with them and we'll continue to look at them and then we'll simply announce it, if and as we do something.”
