AMG To Buy Stakes In 5 Money Managers From Goldman Sach

(RTTNews) - Affiliated Managers Group Inc. (AMG), a global asset management company, said that it has reached a definitive agreement with Petershill Fund I, a group of investment vehicles managed by Goldman Sachs Asset Management, L.P., to acquire 100% of Petershill Fund I's minority equity interests in five leading alternative investment firms: Winton Capital Group Ltd., Capula Investment Management LLP, Partner Fund Management, L.P., Mount Lucas Management LP, and CapeView Capital LLP.

As per the terms of the agreement, AMG will acquire the interests in the firms from Petershill Fund I for approximately $800 million in total consideration, which will be paid in cash at closing, funded up to 50% in equity.

Upon the closing of the transaction, senior management at each of the firms will continue to hold an unchanged majority of the equity in each respective business and retain operating autonomy in the business under the same terms as the prior arrangements with Petershill Fund I.

In addition, upon closing, AMG's assets under management are expected to increase by $55 billion to nearly $700 billion (pro forma as of March 31, 2016), and AMG expects that the transaction will increase Economic earnings per share by $0.50 to $0.80 in 2017.

Closing of the transaction is subject to customary closing conditions, and AMG's investment in interests representing approximately half of the total transaction value is expected to close during the third quarter of 2016, with the balance of the investment expected to close by year-end 2016.