Carnegie Investment Bank AB, a Stockholm-based independent financial institution, has decided to let go of its asset management business and transfer ownership to investment companies Altor Equity Partners and Bure.

In February, the three companies signed an agreement for the transfer of Carnegie Asset Management for roughly $226 million U.S. dollars, a press release said.

"For Altor and Bure, this is an opportunity to provide the foundation for Carnegie to regain and further enhance its position as the leading independent investment bank in the Nordic region," Harald Mix, managing partner at Altor Equity Partners, said in an earlier release. "Given the issues that the Company has faced and the difficult near-term market outlook there are no doubt challenges ahead, but we represent long-term owners who can provide Carnegie the support needed to build a strong and sustainable franchise."

And on Wednesday, the deal to form the new independent management company was finalized. The separation is slated to take effect by the end of next week, the Dec. 23 press release said.

Steinar Lundstrøm, head of asset management at Carnegie, said the division will allow the firm to "better focus on common offering of world-class funds to the Nordic, European and international markets."

Furthermore, the Swedish financial institution stated in the release that change will not affect any clients or personnel and the new company will continue to operate under the Carnegie brand.

"In this new structure, both Carnegie Investment Bank and the asset management business can develop separately but in close co-operation," Frans Lindelöw, president and CEO of Carnegie Investment Bank AB, said in the release. "We are confident that this will benefit both companies."

Currently, the 20-year old money manager provides advisory services to institutional investors and distributional channels. Its parent company, which was first established in 1803, offers equities research and brokerage to its clients in Stockholm, London, New York and Luxembourg.

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