Pilgrim Baxter & Associates and Newbold's Asset Management will merge within a year, Harold Baxter, Pilgrim Baxter's CEO and new CEO of Newbold's, said today. Timothy Havens, Newbold's former CEO, will retire in September.
Both firms are owned by United Asset Management. UAM executives ``blessed'' the idea, which originated with executives at the firms, Mr. Baxter said.
One key benefit of the merger: Newbold's will gain a mutual fund presence and distribution opportunities. Also, Pilgrim Baxter was looking for additional products to broaden its line, Mr. Baxter said. Newbold's is a value manager; Pilgrim Baxter, a growth manager.
As a first step, the two firms will combine in marketing, client service, finance, compliance and operations. Portfolio management will remain separate until the complete merger.
The combined firm will have more than $20 billion under management.
