Old Mutual Asset Management, the US-based global asset management business of Old Mutual plc, has agreed to sell five of its US affiliates to their current senior management teams.
The five affiliate asset managers are 2100 Xenon Group, 300 North Capital, Analytic Investors, Ashfield Capital Partners and Larch Lane Advisors. These businesses had combined assets under management of $11.7 billion at June 30, 2012.
Terms of the transactions were not disclosed. The sales are expected to close in the fourth quarter. The deals are expected to improve OMAM's margin in 2013 and result in the return of over $100 million of seed funding to reinvest in the business.
The firm intends to expand its business through targeted investments in new products, continued investment in global distribution and diversifying its asset classes and strategies.
"As OMAM's strategy has advanced, we believe these five firms are best positioned for continued growth as independent entities owned and managed by their employees,” stated Steve Belgrad, chief financial officer of OMAM.
“We value the partnerships we have had with these five firms and are pleased that we will have an economic interest in their continued success."