Multiboutique manager Pendal Group will acquire Richmond, Va.-based value equity manager Thompson, Siegel & Walmsley from BrightSphere Investment Group, the firms said Monday.
Sydney-based Pendal will buy BrightSphere's 75.1% stake in TSW as well as management's 24.9% stake in the firm for a combined $320 million, a Pendal news release said.
The deal is expected to close during the third quarter, pending regulatory and customary approvals.
John Reifsnider, TSW's CEO, will become CEO of Pendal's combined U.S. business, taking over leadership of the group's other U.S. business, JOHCM USA, from Nick Good, who was named Pendal Group CEO in March.
TSW has assets under management of $23.6 billion, with roughly 60% of that total in the firm's international value equity strategy.
The acquisition will almost double Pendal's U.S. client assets to $44.7 billion. The Group's pro-forma AUM as of June 30, 2021 would be roughly $132 billion.
Both JOHCM and TSW have "solid flow momentum," Mr. Good said in the Pendal news release. For TSW, and most value managers struggling over a multiyear stretch where growth and technology stocks powered the rise in global equity markets, inflows turned positive over the past year or so.
Materials Pendal unveiled in an announcement on Australia's stock exchange showed almost three consecutive years of net outflows until a resumption of inflows since the second half of 2020.
For BrightSphere, the announced sale of its fifth investment management boutique over the past 12 months leaves the multiboutique manager with only two remaining firms: Boston-based global quant firm Acadian Asset Management and Portland, Ore.-based timber and natural resource manager Campbell Global.
In late March, BrightSphere announced it would sell its Landmark Partners affiliate to Ares Management Corp. for roughly $1.1 billion. In February, BrightSphere agreed to sell its Investment Counselors of Maryland unit to William Blair Investment Management.
And in July, BrightSphere said it would sell Dallas-based value equity manager Barrow, Hanley, Mewhinney & Strauss to Sydney-based Perpetual for $335 million and Boston-based growth equity manager Copper Rock Capital Partners to the firm's executives and Bryn Mawr, Pa.-based Spouting Rock Asset Management.
