Affiliated Managers Group
just made its first foray into the Chinese market by acquiring a five percent stake in Hong Kong-based Value Partners Ltd.
, the Wall Street Journal reported
on Monday. With a price tag of approximately $36 million, the stake was purchased from a group of Value Partners senior executives for 3.45 Hong Kong dollars (45 U.S. Cents) a share.
Value Partners is an independent money manager with roughly $4.6 billion assets under management. The deal values Value Partners at about $720 million in total, or nearly 15.7 percent of AUM. As part of the deal, the companies plan to develop products together and to share distribution relationships.
Boston-based AMG is no stranger to acquisitions and already holds stakes in several other money-management firms, including Third Avenue Management
and AQR Capital Management
(both of which have mutual fund offerings). As of September 30th, AMG had roughly $200 billion in assets under management, of which about 40% of its earnings were derived from global and emerging-markets products.
Yet the company's thirst for increasing its global footprint remains unquenched, prompting AMG to pursue opportunities that will increase its presence among international investors and broaden its non-U.S. equity product holdings.
“The opportunity, over time, especially in mainland China, is enormously attractive,” Sean Healey
, chief executive of AMG, told the WSJ.
AMG also unveiled plans to cut the ribbon on a new distribution office in Hong Kong, suggesting that the company's expansion into China is merely in its infancy stage.
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