GAM Holding AG is set to make its first acquisition in the U.S. after agreeing to buy the assets and client relationships of mortgage- and asset-backed securities firm Singleterry Mansley Asset Management, a GAM spokeswoman said.
The spokeswoman said GAM will purchase Singleterry Mansley's $397 million of assets and its client relationships. It is subject to formal consent from Singleterry Mansley's clients and is expected to close this month.
The formal purchase price will be determined by revenues generated over a five-year period, she said.
Singleterry Mansley, based in Summit, N.J., was founded in 2002. Gary Singleterry and Tom Mansley, principals at the firm, and their investment team will join GAM following the deal. They will then relocate to GAM's New York office, and the group will launch a UCITS fund based on Singleterry Mansley's unlevered strategy.
Mr. Singleterry said in a telephone interview that the firm had been reconsidering its own marketing strategy prior to speaking with GAM. He said further conversations convinced both parties that this was “a good fit.”
“(GAM's) global distribution network and its operational and compliance infrastructure will allow us to expand our reach into new markets and client segments,” Mr. Singleterry said in a GAM news release. “In particular, it will be great for us to work closely with GAM's outstanding fixed-income team and contribute to the future development and continued success of their unconstrained global bond strategy.”
David M. Solo, GAM group CEO, in the news release credited Messrs. Singleterry and Mansley's “ability to navigate the severe market stress in 2007-'08 and produce strong positive returns.”
GAM, which has $128.5 billion in total assets under management, currently runs $17 billion in its unconstrained/absolute-return bond strategy, and said the acquisition extends its alternative and specialist fixed-income capabilities.
