Investment services conglomerate Pavilion Financial will acquire private markets investment consultant and separate account platform manager Altius Holdings later this year.
Pavilion will combine the operations of Altius Associates with its own private equity consulting division, LP Capital Advisors, to create Pavilion Alternatives Group, with LPCA bringing $45 billion of assets under advisement to the unit and Altius, $15 billion.
Terms of the deal, which is expected to close in the third quarter, are not being disclosed, said Deanna Allen, a Pavilion spokeswoman, in an e-mail. Altius senior managers have taken “a substantial portion of the consideration” in Pavilion shares and will continue to acquire more shares for expanded ownership, Ms. Allen added.
Layoffs are not planned, Ms. Allen said, because while the two firms offer similar services, most of Altius' institutional investor clients are located in Europe, Asia and Australia, while LPCA's clients primarily are in North America. The combined staff of 70 will work in Pavilion Alternatives Group's Sacramento, Calif., headquarters and in offices in Richmond, Va.; Boston; Salt Lake City; Montreal; London; and Singapore.
Leadership of PAG will include Donn Cox, president and managing director; John Hess, head of global strategic initiatives; and Brad Young, managing director and head of private markets. Mr. Cox currently holds the same roles at LPCA. At Altius Associates, Mr. Hess is founder and chairman and Mr. Young is co-CEO and head of private markets.
The combined unit will enable Pavilion to “form a stronger alternative asset class advisory platform … offering consulting services and solutions across private equity, private credit, real assets and hedge funds,” said Daniel Friedman, Pavilion Financial's president, in a joint news release.
Pavilion's integrated services include investment consulting, implemented consulting, transition management, securities trading, research and wealth management. Assets under advisement will increase to $570 billion after the Altius acquisition.