If fund companies aren't building private wealth management products, they are buying them. A look at some of the recent acquisitions in the fund industry finds that the companies acquired are, in many cases, wealth management firms. And in doing so, mutual funds appear fearful of losing their luster to hedge funds, managed accounts, wrap programs and other wealth products.

This past summer, Legg Mason acquired Private Capital Management, a Naples, Fla-based wealth manager, for roughly $1.4 billion. The deal was Legg Mason's third acquisition of a high-net-worth shop this year.

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