Affiliated Managers Group Inc. (AMG) has given its consent to takeover a UK-based asset manager in less than just two weeks time. This time AMG is buying private equity fund-of-funds Pantheon, a subsidiary of Russell Investments for $775 million in an all cash deal.
At present Pantheon holds a portfolio of $22 billion globally for various pension funds, government bodies and endowment funds.
Earlier, just nine days ago Boston-based AMG bought the UK-based Artemi Investment Management Ltd.
Talking about the deal, Pantheon management confirmed that the company would continue to have a ‘meaningful’ share in the business. As per Pantheon’s Chief Investment Officer the deal took place after Russel was approached a number of times to sell the particular business.
However, experts believe that the industry would see more such consolidations as institutions like banks and insurers continue to offload their non-core business, especially that of fund and investment management to cope up and recover from the financial crisis.
AMG is a specialist in grabbing majority stakes, slightly above 50 per cent in general. At present it has almost two dozens of holding managing assets worth $253 billion across a portfolio of close to 350 investment products.