TriState Capital Holdings agreed to acquire The Killen Group, an investment management firm and the manager of The Berwyn Funds, with approximately $2.5 billion in assets under management.
The value of the all-cash transaction is estimated to be $30 million to $35 million. This includes an initial purchase price of $15 million and an estimated $15 million to $20 million for contingent consideration that may be earned based on incremental growth.
TKG will be combined with Chartwell Investment Partners, a subsidiary of TriState Capital. TKG and Chartwell's pro forma assets under management would total $10.1 billion as of Sept. 30.
TKG and Chartwell both manage equities and fixed-income strategies.
Timothy J. Riddle, managing partner and CEO of Chartwell Investment Partners, said in a phone interview that TKG is “culturally a good fit” with Chartwell and that the firm’s strategies and the Berwyn funds “have great long-term track records.”
Mr. Riddle explained that TKG will become Chartwell, but the firm will retain the Berwyn brand.
The Killen Group has a total of 12 employees, five of which are the investment team. There will be no additions or reductions once the deal closes.
“What makes this work is their responsibilities are the same,” said Mr. Riddle. “We’re not going to make any changes to what they do.”
The 12-person staff will remain in their Berwyn, Pa., office until the lease on Chartwell’s office expires at the end of July. Beginning Aug. 1, Mr. Riddle anticipates the Chartwell and TKG staff will all be under one roof at a yet-to-be determined office.
The transaction is slated to close early in the second quarter of 2016, pending shareholder approval.