Northern Lights Capital Group is merging with Australia’s Treasury Group to form a consolidated company that holds stakes in global asset management firms, company officials announced Tuesday.
Details of the transaction were not disclosed.
The two firms will collectively hold assets under management of more than US$46 billion from money management firms. Of that, Treasury had $23.6 billion and Northern, $22.6 billion. The merger will combine Northern Light’s stakes in 13 firms with Treasury’s stake in eight firms, said Jack Swift, a managing partner at Northern Lights, in an interview.
He said Treasury, a public company, will continue to be traded on ASX, the Australian Securities Exchange, and will remain based in Sydney. Northern Light’s offices in Seattle and Denver will remain open.
Northern Lights had been privately owned.
Both companies take stakes in boutique money management firms — usually sizable minority stakes — and provide operational support.
Mr. Swift said the combined entity will be in a better position to access capital markets to provide financing for boutique firms.
Northern Lights will have a 39% interest in the new company while Treasury will have a 61% stake, Mr. Swift said.
He said the deal is expected to close in the fourth quarter of the year.