In 2005, Principal Global Investors paid $60 million to acquire a 70% interest in Columbus Circle Investors, a growth equity money manager.
Terms of the deal were not disclosed.
Since then, Columbus' assets under management have increased to $17.5 billion from $3.9 billion and the number of products and strategies has doubled to eight, according to a news release from Principal Financial Group.
“Our investment in Columbus Circle Investors has greatly exceeded our midteens return threshold expectations,” said Jim McCaughan, CEO of Principal Global Investors, in the release. “We're pleased to increase our ownership stake at an opportune time. This investment ensures continued success at Columbus Circle Investors and is in line with our capital deployment strategy and efforts to further enhance shareholder value.”
Tony Rizza and Clifford Fox will retain their roles as senior managing directors and portfolios managers at Columbus Circle Investors, and the firm's “management and strategies will continue uninterrupted,” the release said.
Karl W. Anderson, spokesman at Columbus Circle Investors, could not be reached for further information by press time.
Principal Global Investors manages about $328.2 billion in assets primarily for retirement plans and other institutional clients.