The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:AMG Buys a $47B-AUM Firm Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, July 06, 2021

AMG Buys a $47B-AUM Firm

Reported by Neil Anderson, Managing Editor

Affiliated Managers Group, Inc. is poised to buy an ESG-focused asset manager.

Jerome L. "Jerry" Dodson
Parnassus Investments
Founder, Chairman
Today Jay Horgen, president and CEO of AMG, confirms that the West Palm Beach, Florida-based firm has agreed to buy a majority stake in San Francisco-based Parnassus Investments [profile]. Yet the Parnassus partners will still own a "substantial portion" of the boutique and will run the firm's operations day-to-day, according to the AMG team.

As part of the deal, retired Parnassus founder Jerry Dodson and his family will no longer hold stakes in the company. (Dodson stepped back from the firm last year after founding it in 1984. He remains chairman.) Meanwhile, Ben Allen, PM and CEO of Parnassus, and Todd Ahlsten, chief investment officer and PM, are both entering into long-term employment deals.

Dan Fannon, an analyst at Jefferies who follows AMG, says that the price tag on the deal is about $490 million, which translates into about 1 percent of Parnassus' roughly $47 billion in AUM (as of June 30). Yet since the precise size of AMG's expected stake has not yet been disclosed, the precise valuation is not clear: the valuation of the whole of Parnassus could be as high as nearly $1 billion, translating roughly 2 percent of its AUM. "The deal will likely be funded through a combination of cash and debt," Fannon predicts.

Moelis & Company LLC advised Parnassus on the deal, which is expected to close later this year.

Horgen lauds the Parnassus team's "multi-decade work in sustainable investing" and notes that Parnassus will be AMG's "third affiliate wholly dedicated to responsible and impact investing." Indeed, the AMG team expects the deal to more than double AMG's "ESG-dedicated AUM" to about $80 billion. (By comparison, AMG's aggregate AUM as of March 31 was about $738 billion.) They claim that Parnassus is the biggest ESG-dedicated fund firm in the country.

"Having known the senior partners for more than a decade, AMG has developed a unique relationship with this team and closely followed the evolution of their business," Horgen states. "When the time was right for Parnassus to choose a permanent partner and complete the first generational transition in the firm's long-term succession plan, the team chose AMG."

On the Parnassus side, Allen describes the deal as providing "long-term certainty" for Parnassus' clients.

"Todd Ahlsten and I have committed to provide leadership to our firm for many years to come, and other members of the partnership group will be aligned with the long-term interests of our investors, and AMG, through equity ownership in Parnassus," Allen states. "With this new partnership, we are well-positioned to build an enduring, multi-generational, partner-owned investment firm that serves the sustainable investing needs of our clients."

"I am proud of Parnassus' seasoned leadership team and very pleased that the company we built will live on to serve generations of clients to come," Dodson states. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. 2022 IDC Fund Directors Workshop, May 26
  2. Irish Funds Annual Global Funds Conference 2022, May 30-31
  3. WealthManagement Edge, May 31 - June 3
  4. MFDF 2022 Fund Governance and Regulatory Insights Conference, Jun 8-9
  5. 28th annual Expect Miracles East Coast Classic, June 9
  6. 2022 Sohn Investment Conference, June 9
  7. IDC webinar - Cybersecurity for Fund Boards: The Current Landscape, June 9
  8. MMI webinar - Driving Business Value with Artificial Intelligence & Data, June 15
  9. MFDF webinar - Key Takeaways From Morningstar's 2021 Annual Fund Fee Study, June 16
  10. MFDF Director Discussion Series - Open Forum (Chicago), June 21
  11. 2022 MMI Emerging Asset Managers Forum, June 23
  12. MFDF In Focus: Capitol Hill, A Conversation with Congressman Bryan Steil, June 28
  13. Financial Planning INVEST, Jun 28-29
  14. MFDF webinar - Differentiating Mutual-Fund-to-ETF Conversions, July 19
  15. MFDF Director Discussion Series - Open Forum (New York), July 20
  16. 2022 MMI Distribution Leadership Forum, Jul 20-21
  17. MFDF webinar - Fund Boards' Oversight of Investment Performance, July 28
  18. MFDF webinar - Performance, Perception and Manager Selection, September 14
  19. 2022 ICI Tax and Accounting Conference, Sep 18-21
  20. 5th annual Expect Miracles Atlantic Coast Classic, October 3
  21. Nicsa Fearless Leadership Symposium, Oct 6-7
  22. 2022 MMI Annual Conference, Oct 19-21
  23. 2022 IDC Fund Directors Conference, Oct 24-26
  24. 18th annual Expect Miracles Wine & Spirits Event, October 27
  25. Nicsa 2022 General Membership Meeting, October 31 - November 2
  26. Tiburon CEO Summit XLIII, Nov 7-9

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use