The founder and chair of a 35-year-old, $6.869-billion-AUM*, boutique fund firm in California are poised to buy back the company.

Last Friday (February 13), Mark Headley and Paul Matthews revealed that they have agreed to buy a "controlling ownership interest" in Matthews International Capital Management, LLC [profile], home of the Matthews Asia Funds. Headley rejoined the San Francisco-based asset manager as executive chairman last April, and Matthews founded his eponymous firm in 1991.

Matthews International is currently principally owned by Lovell Minnick Partners LLC, Mizuho Bank, and the Royal Bank of Canada (RBC), which each own stakes of between 10 and 24 percent**. (News of the deal comes 15 years after Lovell Minnick bought a minority stake in Matthews International and gained a board seat.) Headley and Matthews also each already own stakes of between 5 and 9 percent**. The Matthews International team reveals that "several of the firm's long-time partners will be increasing their equity ownership," though which partners is not specified.

The Matthews International team has not publicly revealed the expected timeline for the closing of the deal, nor who will be selling their stake(s). No investment bank or deal consultants on the transactions have been publicly disclosed, either.

Headley puts the planned Matthews International deal in the context of his and Matthews' "deep conviction ... in the future of the firm ... and continued commitmemnt to sereving clients with independence and focus." He also reveals the upcoming hiring of APG Asset Management veteran Kathy Xu as a Matthews International portfolio manager, effective March 9.

"I'm delighted that Matthews will once again become a truly independent company under Mark's leadership," Matthews states. "In an increasingly volatile world, I believe the case for international diversification is as compelling today as it was 35 years ago. I'm proud of our history and confident in the continued evolution of our business."

*As of December 31, 2024, according to Matthews International's form ADV filed in October 2025.

**Per Matthews International's form ADV filed last October. 

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