UK/US - Multi-manager investment house Russell Investments, has sold its private equity fund-of-funds operations Pantheon Ventures to US asset management firm Affiliated Managers Group for $775m (€564m) in cash.
The deal signed by Russell - a subsidiary of US-based Northwestern Mutual Life Insurance Company - could yet bring the firm more money as additional payments above the agreed asking price could be made if Pantheon grows as officials anticipate.
At least 21 members of Pantheon's own management team appear to have gained a cut of the new shareholding from its hands-off parent, as a statement from AMG said they will own "a meaningful stake in the partnership and continue to direct the firm's day-to-day operations" while "21 management partners of Pantheon will enter
into long-term employment agreements with the firm".
Pantheon provides asset management services to institutional investors, including European pension fund clients, and manages approximately $22bn in assets. AMG's strategy is to own a stake in boutique investment houses and its assets under management amounted to over $253bn at the end of 2009.
AMG said it will finance the deal through cash and credit facilities.
If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com
No comments yet