MutualFundWire.com: An Insurer Sells a $9.3B-AUM MF Biz

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Tuesday, April 18, 2023

An Insurer Sells a $9.3B-AUM MF Biz

An insurer is selling a $9.3-billion-AUM (as of April 14) mutual fund business as part of a broader deal, as expected.

Dominic Nolan
Aristotle Pacific Capital, LLC
CEO

Yesterday, Richard Hollander, chairman of Aristotle Capital Management, LLC [profile], and Richard Schweitzer, chief financial officer and chief operating officer of Aristotle, confirmed that Los Angeles-based Aristotle has completed its planned acquisition of Newport Beach, California-based Pacific Asset Management, LLC [profile] from Pacific Life Insurance Company. As part of that deal, the Aristotle team is reorganizing some Pacific Funds into newly formed Aristotle Funds.

Aristotle Investment Services, LLC, a newly created Aristotle affiliate, will serve as administrator and investment advisor to the new Aristotle Funds. Meanwhile, the $20.7-billion-AUM Pacific Asset Management has been rebranded as Aristotle Pacific Capital, LLC, with PAM CEO Dominic Nolan remaining at the helm and more than 50 people moving over. Across all its affiliates, Aristotle now has more than $77 billion in AUM.

Though pricing and terms of the deal have not been disclosed, Pacific Life now has a minority stake in Aristotle. The insurer will also expand its strategic partnership with the new Aristotle Funds and Aristotle Pacific.

RBC Capital Markets advised Pacific Life on the deal. On the legal side, Stradley Ronon Stevens & Young, LLP and Goodwin Procter LLP counseled Pacific Life, while Ballard Spahr LLP, TJC Law Group LLP, and Ropes & Gray LLP counseled Aristotle.

The Aristotle-Pacific deal was first unveiled back in October 2022.

Hollander describes the Pacific-Aristotle deal as "a significant step in Aristotle's client-centric strategy."

"I am incredibly proud of what our team has been able to accomplish in such a short time frame, including the complexities of creating new Aristotle Funds and organizing a new affiliate to serve as an advisor and administrator," Schweitzer states.

"We look forward to the continued success of our existing team and the opportunities that will come with our combined efforts," Nolan states. "We are thankful for our time with Pacific Life and excited to be joining the Aristotle family."

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