Affiliated Managers Group has bought its mini-me. The asset manager announced on Tuesday that it will pay approximately $250 million to acquire First Asset Management, a privately-owned asset management firm that employs an AMG-like affiliate model.

AMG is paying approximately 90 percent of the total price tag (which includes First Asset debt) in cash and the rest in AMG equity. The deal is expected to close in the third quarter.

First Asset Management owns stakes in six other asset management firms, with assets totaling approximately $23 billion. In total, the six firms offer 100 investment products to retail and institutional investors.

Joining the AMG family are Toronto-based equity and fixed income managers Foyston, Gordon & Payne and Beutel, Goodman & Company Ltd; Montreal-based growth-oriented equity, balanced and fixed income manager Montrusco Bolton Investments Inc.; Vancouver-based specialty manager Deans Knight Capital Management Ltd.; Toronto-based structured investment manager Triax Capital Corporation; and venture capital fund manager Covington Capital Corporation.

AMG will hold varying stakes in the six firms:

Approximately 60 percent stake in Foyston, Gordon & Payne
49 percent stake in Beutel, Goodman & Company Ltd
70 percent stake in Montrusco Bolton Investments Inc.
Slightly more than 50 percent of equity in Deans Knight Capital Management Ltd
100 percent of Triax Capital Corporation and Covington Capital Corporation

"This investment will broaden AMG's international presence through partnerships with a number of Canada's leading mid-sized asset management firms," stated Seth W. Brennan, AMG's executive vice president of new investments.

AMG will pursue its trademark affiliate model with the firms, allowing the firms to retain "operating autonomy and equity or equity-like incentives similar to those of AMG's Affiliates," stated Brennan.

First Asset president Michael Simonetta will join AMG as president of AMG's Canadian office. The investment staff of each money manager is expected to remain in place.  

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