City of London Investment Group has agreed to acquire Karpus Management in a merger deal, CLIG spokeswoman Theresa Barrows confirmed in an email.
The acquisition of Karpus is in line with CLIG’s strategic plan to expand its U.S. presence, the news release said.
CLIG’s money management subsidiary, City of London Investment Management Co., has $5 billion in assets under management. Karpus Management is a U.S.-based investment manager with $3.5 billion in AUM.
The investment management teams at CLIM and Karpus Management will remain separate and unaltered entities.
The deal is scheduled to close Oct. 1, pending approval by existing CLIG shareholders and Karpus Management clients.
No changes in staffing are expected, nor is there any overlap in clients or products. Karpus Management founder George Karpus has agreed to retire once the deal closes. Mr. Karpus has the right to nominate one non-executive director and one executive director to CLIG’s board.