The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Legg Mason Becomes Fifth Largest Fund Manager Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, June 24, 2005

Legg Mason Becomes Fifth Largest Fund Manager

Reported by Theresa Sim

Citigroup and Legg Mason's deal to swap asset management for brokerage is final, the companies announced on Friday.

The deal gives Legg Mason $830 billion in total assets under management, making the Baltimore, Maryland-based manager the the fifth largest U.S. fund manager and fifth largest U.S. asset manager.

Legg Mason will acquire $437 billion in assets under management from Citi's asset management business. Legg Mason also announced it will acquire fund-of-hedge fund manager, the Permal Group, from Sequana Capital and executives at the Permal Group. The Permal Group manages $20 billion in assets.

In exchange, Citigroup will gain Legg Mason's private client brokerage and capital makets business, as well as $1.5 billion in common and convertible shares of Legg Mason stock, a $550 million loan.

Legg Mason and Citigroup also agreed to a three-year distribution deal where Legg Mason will have access to Citigroup's Smith Barney broker force, Citigroup Private Bank, Citibank branches, Citigroup's Primerica life insurance and variable annuity sales representatives, and CitiStreet.

"Citigroup will continue to offer its clients Asset Managementís products and in addition, inherit Legg Mason Wood Walkerís position as the primary domestic provider of Legg Masonís equity fund family, including the top performing equity funds of Legg Mason Capital Management Inc. managed by Bill Miller," stated Citigroup officials in a press release.

Legg Mason's chairman and chief executive officer, Raymond "Chip" Mason said the deal would expand Legg Mason's geographic reach to Japan, Hong Kong, Australia and Latin America.

"Another attractive aspect of this transaction is the strategic fit between Western Asset, our leading fixed income manager, and CAM's fixed income buisness. We believe there are opportunities to generate substantial strategic and economic benefits by combining CAM's fixed income business with Western Asset's," said Mason.

Post-deal, Legg Mason's Western Asset Management will manage approximately $490 billion in fixed income assets.

Legg Mason's acquisition of Permal will cost another $800 million for an 80 percent interest, with the right to purchase the remaining 20 percent within four years.

Permal serves high-net worth investors in Asia, South America, Europe and the Middle East. The management of the fund manager will remain intact.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use