PGIM Investments, the global investment management arm of Prudential Financial, said Tuesday it agreed to acquire Green Harvest Asset Management, a separately managed account platform that serves high-net-worth investors.
Based in New York, Green Harvest adopts strategies in direct indexing through the use of exchange-traded funds designed to provide its clients with "improved after-tax outcomes."
Green Harvest was formed in 2017 by a team of ETF and asset management experts. The firm creates and manages ETF portfolios that tracks U.S., global and custom indexes while seeking to maximize after-tax returns.
Kylie Scott, PGIM spokeswoman, said by email that deal terms and the asset size of the firm to be acquired were not disclosed. But she added that the transaction will enable "a new capability" for PGIM.
In explaining the planned acquisition, Stuart Parker, president and CEO of PGIM, stated in a news release that with markets "near all-time highs and potential tax increases on the horizon, understanding the impact of capital gains taxes and implementing strategies focused on after-tax results are critically important for investors, particularly those in the ultra-high net-worth category."
Robert Holderith, Green Harvest CEO, said in the news release his firm sees "tremendous value" in combining Green Harvest's capabilities with the "strength and stability" of PGIM.
According to Green Harvest's website, Mr. Holderith was formerly president and founder of Emerging Global Advisors, the advisor to the EGShares family of ETFs. He has been involved with ETFs since 1999.
Green Harvest currently runs the Core Index Plus U.S. Equity ETF, Core Index Plus Global Equity ETF, Core Index Plus Municipal High-Income ETF and Core Index Plus Quality Municipal ETF. The firm also operates Core Index Plus US Equity 50% Hedged ETF, Core Alpha Plus Disruptive Innovation ETF and Core Alpha Plus Multifactor Value ETF.
Upon the anticipated fourth-quarter closing of the transaction, which remains subject to certain conditions, Green Harvest will join PGIM's retail platform.
PGIM had approximately $1.5 trillion in assets under management as of June 30.
Other major asset managers have made similar acquisitions recently. For example, Franklin Resources said in late September that it plans to acquire O'Shaughnessy Asset Management, which manages factor-based strategies and customized indexed separate accounts.
In July of this year, Vanguard noted it will acquire Just Invest, a wealth management technology firm that includes a direct indexing platform.