MutualFundWire.com: Old Mutual Asset Management Selling off Five Affiliates
MutualFundWire.com
   The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Thursday, October 11, 2012

Old Mutual Asset Management Selling off Five Affiliates


After a lengthy, two-year-long, transatlantic divorce process, Old Mutual Asset Management [profile] is selling off five more of its affiliates-- this time to their current senior management teams.

Trouble in paradise started at Old Mutual's U.S. operations when Peter Bain took over as chief executive in February 2011. For example, five senior executives were out the door by April 2011.

The firm reportedly started talks to sell of its U.S. operations in September 2011.

Old Mutual then sold off a Dwight Fund in October, and then all of Dwight to Goldman Sachs in February.

The five asset management affiliates being sold this time are:

  • Analytic Investors has more than $6 billion in assets under management as of June 30, 2012 and serves institutional and mutual fund investors in the U.S., Canada, Japan, Australia and Europe.

  • 300 North Capital is an institutional investment manager specializing in long-only mid cap, small cap, and SMID (small and mid) cap U.S. growth equity strategies, as well as a global macro strategy.

  • 2100 Xenon Group is a Chicago-based global investment manager with a diversified managed futures strategy and trades in 34 global markets including commodities, bonds, currencies, equity indices, metals and energies across multiple time frames.

  • Ashfield Capital Partners, based in San Francisco, CA, offers portfolios comprising high-quality growth companies for domestic and international corporate retirement plans, public funds, multi-employer pension plans, endowments, foundations and private investors. Its predecessor company was founded in 1973 and was reorganized in 2007 when Old Mutual (US) Holdings Inc. purchased a majority interest in the firm.

  • Larch Lane Advisors specializes in fund of hedge fund investment strategies for qualified institutional and individual investors.

    These businesses had combined assets under management of $11.7 billion as of June 30, 2012, according to Old Mutual.



    Company Press Release

    Old Mutual Asset Management Strategically Focuses Portfolio to Align with Growth Plan



    Senior management teams agree to purchase select affiliated firms



    Repositioning of existing portfolio now complete



    BOSTON — Oct. 11, 2012 — Old Mutual Asset Management (OMAM), the U.S.-based global asset management business of Old Mutual plc, announced today that it has entered into definitive agreements to sell five of its U.S. affiliates to their current senior management teams. The five affiliate asset managers are 2100 Xenon Group, 300 North Capital, Analytic Investors, Ashfield Capital Partners and Larch Lane Advisors. These businesses had combined assets under management of $11.7 billion as of June 30, 2012.

    Terms of the transactions were not disclosed. The sales are expected to close in the fourth quarter of 2012, subject to customary closing conditions.

    "These transactions complete the transition of our existing portfolio, begun 18 months ago, and will enable us to focus our capital and distribution resources on our largest affiliates and those that are pursuing initiatives most highly aligned with our overall strategy," said Peter Bain, Chief Executive Officer of Old Mutual Asset Management. "Our growth plan is grounded in creating a portfolio of diverse affiliates with institutionally-focused active strategies that can benefit from our global distribution capabilities."

    "As OMAM's strategy has advanced, we believe these five firms are best positioned for continued growth as independent entities owned and managed by their employees. We value the partnerships we have had with these five firms and are pleased that we will have an economic interest in their continued success," said Steve Belgrad, Executive Vice President and Chief Financial Officer of OMAM.

    Over the past 18 months, OMAM has appointed key executives to lead its strategic growth initiatives. Following the closing of these five transactions, OMAM will have nine affiliate asset managers with a broad array of investment expertise that had combined assets under management of $196.9 billion as of June 30, 2012. These transactions are expected to improve OMAM's margin in 2013 and result in the return of over $100 million of funding to reinvest in the business. Going forward, the company intends to expand its business through strategic growth initiatives, driven by strong investment performance and targeted investments in new products, continued investment in global distribution, and diversifying its asset classes and strategies.




    Printed from: MFWire.com/story.asp?s=41614

    Copyright 2012, InvestmentWires, Inc.
    All Rights Reserved