Robeco Investment Management (RIM) is selling off its U.S. fixed income business. In a release, Robeco said it sold the $4.8 billion business to Morgan Stanley Investment Management, because it had not garnered sufficient scale for long-term growth. Robeco's fixed income assets are manged by its affiliate Weiss, Peck, and Greer.
The company said it chose Morgan Stanley because of its "long-standing reputation, strong performance track record and world-class client service. " Terms of the deal, expected to close in May of 2008, were not disclosed.
“We are excited to have the opportunity to work with and welcome Robeco Weiss, Peck, and Greer’s clients to Morgan Stanley Investment Management,” said David Germany
, Head and Chief Investment Officer of MSIM’s Global Fixed Income business.
Robeco also said it was in the process of exiting the U.S. municipal bond business with another deal expected to close in June of 2008.
Jefferies Putnam Lovell served as the financial advisor to Robeco on the deal. Members of the advisory team include: Aaron H. Dorr
, managing director; Krzysztof Owerkowicz
, vice president; Nicholas B. Pratt
, associate; and Jason Harris
According to Robeco's website, its fixed income products include eight funds: the Robeco WPG Core Fixed Income, Robeco WPG Enhanced Core Fixed Income, Robeco WPG Short-Term Fixed Income, Robeco WPG Intermediate Fixed Income, Robeco WPG High Yield Fixed Income, Robeco WPG Income Plus Municipal Fixed Income, Robeco WPG Municipal Core Fixed Income and the Robeco WPG Municipal Extended Core Fixed Income.
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