Sean Healey's family of fundsters has gained yet another member.
AMG has announced that into an agreement to acquire a majority equity interest in SouthernSun Asset Management, a $5 billion AUM boutique which specializes in U.S. small and mid-cap strategies.
The terms of the deal were not disclosed, but according to the company, SouthernSun’s partners will continue to hold a substantial portion of the equity of the business and direct its day-to-day operations after the transaction closes.
The firm’s flagship SouthernSun Small Cap Fund is rated five stars by Morningstar in the small blend category. The fund’s performance is in the top percentile for its category for the trailing three-, five- and ten-year periods, and was named “Best Fund over Three Years” in the Small-Cap Core Funds category of the 2013 Lipper Fund Awards. In 2012, SouthernSun launched its U.S. Equity Fund, which is currently outperforming the S&P 500 by more than 500 basis points on a trailing one-year basis, according to Morningstar.
“AMG continues to attract the industry’s best boutiques, and SouthernSun has distinguished itself with world-class investment products. With a long-term track record of generating exceptional returns for investors, and outstanding prospects for future growth, SouthernSun is an excellent addition to our Affiliate group,” stated Healey, AMG’s chairman and chief executive officer. “We believe that the firm’s measured, disciplined approach to identifying value in prospective investments will enable it to continue to generate extraordinary growth in the years ahead.”
Healey's family continues to grow in fits and starts.
As part of the transaction, SouthernSun’s senior professionals have agreed to long-term commitments with the firm, and the SouthernSun funds will become part of AMG’s mutual fund platform. In addition, AMG will acquire the entire ownership interest of the outside investors in the firm.
Here is the press release:
Company Press Release
AMG Announces Investment in SouthernSun Asset Management
BOSTON, December 19, 2013 – Affiliated Managers Group, Inc. (NYSE: AMG), a global asset management company, has entered into a definitive agreement to acquire a majority equity interest in SouthernSun Asset Management, LLC (“SouthernSun”). After the closing of the transaction, SouthernSun’s partners will continue to hold a substantial portion of the equity of the business and direct its day-to-day operations.
With approximately $5 billion in assets under management, SouthernSun was founded in 1989 and manages long-term, concentrated portfolios through a fundamental, research-intensive investment process. The firm offers industry-leading U.S. small- and mid-cap strategies and a recently launched global investment strategy. As of September 30, 2013, SouthernSun’s U.S. institutional strategies rated in the top five percent of their respective categories for the trailing one-, three-, five- and ten-year periods, according to eVestment.
The firm’s flagship SouthernSun Small Cap Fund is rated five stars by Morningstar in the small blend category. The fund’s performance is in the top percentile for its category for the trailing three-, five- and ten-year periods, and was named “Best Fund over Three Years” in the Small-Cap Core Funds category of the 2013 Lipper Fund Awards. In 2012, SouthernSun launched its U.S. Equity Fund, which is currently outperforming the S&P 500 by more than 500 basis points on a trailing one-year basis, according to Morningstar.
“AMG continues to attract the industry’s best boutiques, and SouthernSun has distinguished itself with world-class investment products. With a long-term track record of generating exceptional returns for investors, and outstanding prospects for future growth, SouthernSun is an excellent addition to our Affiliate group,” said Sean M. Healey, AMG’s Chairman and Chief Executive Officer. “We believe that the firm’s measured, disciplined approach to identifying value in prospective investments will enable it to continue to generate extraordinary growth in the years ahead.”
Michael W. Cook, Sr., SouthernSun’s Founder, Chief Executive Officer and Chief Investment Officer, said, “Through AMG’s partnership approach, we will retain our operating autonomy and ability to continue to employ the uniquely patient approach to investment management that has been so essential to our success. The partnership with AMG will also position our team for the long-term by facilitating equity transfers over time to the next generation of partners here at SouthernSun.”
As part of the transaction, SouthernSun’s senior professionals have agreed to long-term commitments with the firm, and the SouthernSun funds will become part of AMG’s mutual fund platform. In addition, AMG will acquire the entire ownership interest of the outside investors in the firm. The terms of the transaction 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 September 30, 2013, the aggregate assets under management of AMG’s Affiliates were approximately $513 billion (pro forma for a pending investment) in more than 400 investment products across a broad range of investment styles, asset classes and distribution channels. For more information, please visit the Company’s website at www.amg.com.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, the ability to close pending investments, the investment performance of our Affiliates and their ability to effectively market their investment strategies, and other risks detailed from time to time in AMG’s filings with the SEC. Reference is hereby made to the “Risk Factors” set forth in AMG’s Form 10-K for the year ended December 31, 2012.
AMG routinely posts information that may be significant for investors in the Investor Information section of its website, and encourages investors to consult that section regularly. For additional information, please visit www.amg.com.
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