In a Zoom interview on May 30, Gevry and Boyd Watterson executives Timothy Hyland, president, and Zachary Segal, executive vice president, said the combination offers benefits for both firms.
The combination will create a firm with almost double the assets under management of its predecessors. Boyd Watterson's assets under management are $18.2 billion, and Amber's are $17.5 billion (U.S). Combined, the firms will have a total of 300 investment personnel, and offices in eight U.S. cities and 12 countries.
Gevry said the alliance will give Boyd Watterson the ability to enter European countries it was interested in seeking but lacked the knowledge of cross-border operations, political and business nuances that Amber can provide.
The global alternative investment framework will use Boyd Watterson's U.S. offices and staff to help Amber expand its efforts to tap into the U.S. infrastructure market. Amber's current U.S. staff numbers about 20.
Segal said Amber invests in government facilities in the EU, provides funding for trains, solar power and similar infrastructure, including The Thames Tideway, a London sewer project.
Gevry said increased federal funding in chips production and infrastructure makes the U.S. an attractive market for Amber.
Likewise, Boyd Watterson's significant investments in real estate leased to federal, state and local governments also give the company contacts in the public sector that are valuable for Amber. An area that is familiar turf in Europe for Amber is in railroad investments, which may grow with state and federal public transit initiatives in the U.S.
Hyland said federal stimulus and chips investments are designed to be amenable to private capital to supplement the traditional bond market in this country.
"This asset class is attractive to pension funds for long-term, stable investments and also supports employment in construction trades," Hyland said.
Likewise, Amber is expected to benefit from Boyd Watterson's fundraising acumen and network in the U.S. for capital, Hyland said.
Since the idea is to form a single global investment management concern, the two companies likely will get a common name at some point in the future, Gevry said.
Hunt Cos., a family-owned investment company based in El Paso, Texas, has investments in both companies and suggested they consider a combination because of their commonalities, according to Carolyn Baker, a Hunt spokeswoman.
However, Gevry emphasized the constituent companies saw the combination in terms of their own interests.
"By no means is this a shotgun marriage," Gevry said.
Financial terms were not disclosed. However, Gevry described the financial aspects of the deal as "substantial."
The transaction is subject to Boyd Watterson’s and Amber’s respective client and investor consent procedures as well as other customary regulatory approvals on both sides of the Atlantic.
