US-based asset management firm Affiliated Managers Group (AMG) has agreed to purchase 100% of minority equity interests in five alternative investment firms from Petershill Fund I- Goldman Sachs’ alternative asset management unit- in a deal worth about $800m.
The five alternative investment firms include London-based Winton Capital Group, London’s Capula Investment Management, San-Francisco-based Partner Fund Management, Pennsylvania’s Mount Lucas Management, and London-based CapeView Capital.
The total consideration for the transaction will be paid in cash at closing, funded up to 50% in equity.
AMG expects the deal to boost its assets under management by $55bn to about $700bn, and increase its economic earnings per share by $0.50 to $0.80 in 2017.
Post deal completion, senior management of all firms will continue to hold unchanged majority of the equity and operating autonomy in their respective businesses.
AMG’s investment in interests representing about half of the total deal amount is slated to be completed in the third quarter of 2016, while the balance of the investment is expected to be wrapped up by year-end 2016.
AMG chairman and CEO Sean Healey said: "We are delighted to be investing in these excellent firms, and have tremendous regard for the businesses built by their outstanding management teams. Consistent with AMG’s partnership philosophy, the management team of each firm will continue to have operating autonomy and substantial retained equity in their own businesses."