Manning & Napier on Friday announced it signed an agreement to be acquired by money management firm Callodine Group for $293 million.
Also, Callodine will purchase from M&N Group Holdings all of the outstanding limited liability company interests in Manning & Napier at the same share price, the firms said in a joint news release. According to Manning & Napier's annual report released on March 15, M&N Group Holdings owned 2.3% of the company's Class A units, while Manning & Napier owned the remaining shares.
Marc Mayer, chairman and CEO of Manning & Napier, will remain in his position and will "roll over a significant portion" of his currently held shares into Callodine, the release said. Manning & Napier's management team, investment philosophy and processes, client-facing teams, and stewardship groups are expected to "remain in place."
After the transaction closes, expected in the third quarter, Manning & Napier will become a wholly owned subsidiary of Callodine.
Manning & Napier reported assets under management of $20.8 billion as of Feb. 28, according to the company. Callodine, with about $2 billion in assets under management, specializes in "yield-oriented investment strategies," the Friday news release noted.
Callodine is executing the proposed transaction "in partnership" with East Asset Management, which is a "strategic investor" in Callodine, the release said. East Asset, which invests in private and public market securities, is owned by Terrence and Kim Pegula, owners of Pegula Sports & Entertainment, which owns the Buffalo Bills football team and Buffalo Sabres ice hockey team, among other properties.
James Morrow, founder and CEO of Callodine, said by email that Callodine is the "acquiring entity" of this transaction." Mr. Morrow was previously a "shareholder of Manning & Napier after the company became public and has followed the stock for nearly a decade."
Mr. Morrow added that East Asset is a "passive investor in Callodine and its managed funds."
