Parametric Portfolio Associates, a Seattle-based subsidiary of Eaton Vance Corp., has agreed to acquire the business of The Clifton Group Investment Management Company, a Minneapolis-based provider of futures- and options-based overlay services and custom risk management products to institutional investors.
The deal is expected to be completed by December 31. Terms are not being disclosed.
As of September 30, 2012, Clifton managed $33.4 billion of funded and overlay assets on behalf of some 180 institutional clients. The firm is currently owned 80% by non-employee shareholders and 20% by Clifton's three principals: Chief Investment Officer Jack Hansen, senior portfolio manager Thomas Lee and managing principal Kip Chaffee. Each of the principals will exchange Clifton stock for Parametric equity and will continue in his current role.
Clifton will operate as a division of Parametric, with Chaffee reporting to Brian Langstraat, Parametric's chief executive officer, and Hansen retaining responsibility for leading Clifton's investment function. Clifton will continue in its current location, and no changes in Clifton personnel are expected as a result of the transaction, according to a statement.
"Since becoming part of Eaton Vance in 2003, Parametric has been a key element of our strategy to position the Company for an evolving investment management landscape and a major contributor to our growth," said Thomas Faust Jr., chairman and chief executive officer of Eaton Vance Corp. "The Clifton acquisition elevates Parametric's market position and overall importance to Eaton Vance."