Legg Mason of Baltimore announced last week that it will acquire Private Capital Management, a high-net-worth manager in Naples, Fla. in a cash and incentive deal that could reach $1.38 billion. This is Legg Mason's third acquisition of a wealth adviser within the past six months.

PCM, with $8 billion in assets under management, will become a wholly-owned subsidiary of Legg Mason and will continue to be managed by its two principals and co-founders. PCM was established in 1985 to manage money for the Collier family and now manages money for 1,500 clients including wealthy individuals, families, endowments, foundations and several institutions.

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