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Wednesday, October 26, 2016|
Katz Smiles on Faust's $53MM Deal
Eaton Vance is about to shell out $53 million in cash for Calvert, and one of the most prominent Wall Street analysts watching asset management still likes the deal.
Barron's reported on Katz's fresh take on the deal. Faust unveiled the deal Friday morning before the conference call, and he talked with MFWire about the deal.
Katz and his Citi colleagues like the deal because they like the "quite modest price" (asset managers often sell for one to three percent of AUM) and because they expect "significant cost saves" from moving Calvert from its own infrastructure onto Eaton Vance's in many areas. And the Citi folks see ESG (or "responsible investing," as the Calvert folks call it) as being a notable area of industry growth, despite Calvert's recent woes, and Eaton Vance has the distribution to take advantage of that ESG growth.
Printed from: MFWire.com/story.asp?s=55039
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