Affiliated Managers Group has agreed to acquire the minority equity interests in five hedge fund managers from Petershill Fund I, managed by Goldman Sachs Asset Management, said Sean M. Healey, chairman and CEO of AMG.
The five firms are:
- Winton Capital Group, a manager that offers a range of strategies from diversified multiasset offerings to regional long-only equities with about $34.5 billion in assets under management;
- Capula Investment Management, a specialist credit and tail-risk manager with $12.7 billion in assets under management;
- Partner Fund Management, which focuses on global equities and fixed income with $4.3 billion in AUM;
- Mount Lucas Management, a manager with $1.7 billion across global macro, a diversified futures index strategy, a commodity futures index strategy and large-cap equity; and
- CapeView Capital, a London-based manager with $1.7 billion AUM operating a European credit and distressed debt fund as well as a European equity long/short fund.
“We're in the business of forming permanent partnerships with boutique asset management firms,” said Mr. Healey in a phone interview. “These firms fit absolutely squarely within our core business strategy.”
Under the terms of the agreement, AMG will acquire the interests in the firms from Petershill Fund I for about $800 million in total consideration, which will be paid in cash at closing.
Once the deal closes, senior management at each of the firms will continue to hold an unchanged majority of the equity in each respective business and retain operating autonomy in the business under the same terms as the prior arrangements with Petershill Fund I.
In addition, upon closing, AMG's assets under management are expected to increase by $55 billion to nearly $700 billion. AMG currently has $285 billion in alternatives AUM.
AMG's investment in interests representing about half of the total transaction value is expected to close during the third quarter, with the balance of the investment expected to close by year-end.
Barclays advised AMG on the acquisition.