Anchor Capital Advisors is buying back the majority ownership stake of its company from Boston Private Financial Holdings, confirmed Anchor spokesman Will Friedman in an email.
The transaction is expected to close in the first quarter.
Once the deal closes, Anchor employees will own 70% of the company, compared to their current ownership of about 17%. As part of the transaction, an affiliate of Lincoln Peak Capital Management, a Boston-based private investment firm focused on partnering with asset management firms, will acquire the remaining 30%.
Boston Private will receive approximately $32 million in cash at closing and future revenue-sharing payments that have a net present value of approximately $15 million at closing, said a news release issued by Boston Private.
In conjunction with regaining ownership of the company, Anchor is also implementing a leadership succession plan. Once the deal closes, Bill Rice Jr., the firm's and chief investment officer, will succeed his father, Bill Rice Sr., as CEO. Bill Rice Sr., who is also president, will become executive chairman. Bill Rice Jr. will remain CIO.
Meanwhile, Mark Bergen, Anchor's chief operating officer, will assume the role of president while continuing to serve as COO.
Anchor originally sold the majority stake to Boston Private in 2006. Since then, the firm has "invested in significant infrastructure changes," said a news release issued by Anchor. These changes include forming a marketing team, investing in technology, and enhancing investment management operations and training.
Anchor Capital Advisors is a Boston-based investment manager with $9.2 billion in assets under management as of Sept. 30. Lincoln Peak Capital has partnerships with five firms that collectively manage more than $65 billion in assets.
Broadhaven Capital Partners served as financial adviser and Goodwin Procter served as legal counsel to Boston Private in this transaction. Wilmer Cutler Pickering Hale and Dorr served as legal counsel to Anchor. Morgan, Lewis & Bockius served as legal counsel to Lincoln Peak Capital Management.
