Manning & Napier agreed to acquire a majority interest in Rainier Investment Management, a Seattle-based money manager with more than $3 billion in assets under management, said Manning & Napier spokesman Brian Schaffer.
The acquisition will further diversify Manning & Napier's product offerings, enhance the firm's positioning as a provider of investment offerings to defined contribution plans and broaden its geographic coverage of the Western U.S., according to a news release.
Under the terms of the transaction, key professionals at Rainier will maintain a 25% ownership stake in Rainier, with Manning & Napier owning the remaining 75%. The transaction is structured with an initial upfront cash payment funded through the company's available cash position, with additional payments based on Rainier achieving certain financial targets over a four-year period.
The transaction is expected to close in the first half of 2016, subject to customary regulatory approvals and closing conditions. Additional financial terms of the transaction were not disclosed.
The investment teams of both Manning & Napier and Rainier will remain autonomous, and the transaction will not result in changes to either firm's investment personnel or processes. Rainier will continue to operate from its Seattle headquarters and keep its name.
Fairport, N.Y.-based Manning & Napier offers equity, fixed-income and alternative strategies and had $37.3 billion in AUM as of Nov. 30. Rainier offers domestic and global equity and fixed-income strategies.