Sean Healey and his team at Affiliated Managers Group have sealed a deal to purchase a majority stake in Trilogy Global Advisors. Financial terms of the deal were not made public.
Sean Healey AMG President and CEO
Trilogy, based in New York and Florida, had $12 billion of AUM as of end-June. The firm manages assets for institutional and retail clients in the U.S., Europe and the Asia-Pacific region.
As is its custom when doing deals, AMG is leaving a substantial equity interest in the hands of Trilogy's senior management, who will continue to direct day-to-day operations.
Recent additions to the AMG empire include mutual fund firm Aston Asset Management, private equity fund-of-funds Pantheon and UK
fund manager Artemis.
Company Press Release
AMG Announces Investment in Trilogy Global Advisors
BOSTON, September 27, 2010 ¨C Affiliated Managers Group, Inc. (NYSE: AMG) and Trilogy Global Advisors, LLC ("Trilogy") have reached a definitive agreement for AMG to acquire a majority interest in Trilogy. After the closing of the transaction, the management partners of Trilogy will continue to hold a substantial portion of the equity of the business and direct its day-to-day operations.
"We are very pleased to partner with Trilogy, and we have the highest regard for Bill Sterling and his team," said Sean M. Healey, AMG¡¯s President and Chief Executive Officer. "We are confident in Trilogy's outstanding long-term growth prospects. Global and emerging markets are among the fastest-growing areas in the asset management industry, and, with its excellent investment performance record, Trilogy is a leader among firms investing in these areas. We look forward to working with Trilogy on a range of initiatives, including AMG's global distribution and client service capabilities, which will further enhance the firm¡¯s prospects. The addition of Trilogy extends our position in outstanding global and emerging markets products, which will account for nearly 40% of our earnings upon the closing of the transaction."
Led by its founding partners, Trilogy has a deep team of 21 seasoned investment professionals who average more than 16 years of experience. All members of the management team will remain with the firm upon completion of the transaction, and all of the firm¡¯s senior partners have entered into long-term employment agreements with the firm and AMG. Following the closing of the transaction, the firm¡¯s management will reinvest a significant portion of the transaction proceeds into Trilogy products.
"Independence is a critical element of our culture, and when considering a permanent partner for Trilogy, we chose AMG¡¯s unique model which provides ongoing operational autonomy and preserves each firm's investment culture. Our partnership with AMG also enables us to hold direct equity participation in the growth of our business and maintain our unique investment culture," said William Sterling, Trilogy's Chief Investment Officer and co-founder. "In addition, we are now in a position to facilitate succession planning through a structure that ensures a robust incentive plan is in place for the next generation."
Upon completion of the transaction, AMG will own a majority equity interest in Trilogy and a broad group of Trilogy¡¯s senior professionals will continue to hold a substantial equity interest in the firm. The terms of the transaction, which is expected to close upon receipt of customary regulatory approvals and other customary closing conditions, were not disclosed.
About Affiliated Managers Group
AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG¡¯s innovative partnership approach allows each Affiliate¡¯s management team to own significant equity in their firm while maintaining operational autonomy. AMG¡¯s strategy is to generate growth through the internal growth of existing Affiliates, as well as through investments in new Affiliates. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of June 30, 2010, the aggregate assets under management of AMG¡¯s Affiliates were approximately $261 billion (pro forma for a pending investment) in more than 350 investment products across a broad range of investment styles, asset classes and distribution channels. For more information, please visit AMG¡¯s website at www.amg.com.