MutualFundWire.com: Janus Buys Further into a Value Shop in a $90 Million Deal
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Tuesday, July 08, 2008|
Janus Buys Further into a Value Shop in a $90 Million Deal
Janus Capital Group will plunk down $90 million to become the majority owner in Chicago-based value manager Perkins, Wolf, McDonnell and Company, LLC, which has AUM of $10 billion. Denver-based Janus has owned a 30 percent stake in PWM since 2003 and when the new transaction closes later this year, Janus' stake will rise to 80 percent. PWM will then change its name to Perkins Investment Management.
Also later this year, Janus plans to roll out the Janus Adviser Perkins Large Cap Value Fund, which will be based on an existing institutional strategy. PWM co-portfolio managers Tom Perkins and Kevin Preloger will run the fund.
The proposed deal includes subadvisory agreements that must be greenlighted by shareholders of the affected funds. When the transaction closes, Janus plans to rechristen its Janus Mid Cap Value Funds and outside the U.S., the PWM-subadvised Janus Capital Funds.
Janus Capital CEO Gary Black called Perkins a "strategic partner" and said the deal "enables Janus to offer our clients a wider range of investment solutions."
Company Press Release
DENVER – Janus Capital Group Inc. (NYSE: JNS) today announced plans to purchase an additional 50%
ownership interest in U.S. value manager, Perkins, Wolf, McDonnell and Company, LLC (PWM) for $90
million. Once the pending deal closes later this year, Janus will own 80% of the Chicago-based firm.
Acquiring a respected value-oriented investment firm enables the company to offer a more broadly diversified
range of investment products and complements Janus’ growth and risk-managed product lineup.
Janus also announced plans to launch Janus Adviser Perkins Large Cap Value Fund for U.S. investors in late
2008. The fund, which is based on an existing institutional strategy, will be managed by PWM co-portfolio
managers Tom Perkins and Kevin Preloger.
“Perkins has been a key strategic partner for Janus and we have great confidence in its investment
professionals and research-driven approach to value investing,” said Janus CEO Gary Black. “This agreement
is important because it enables Janus to offer our clients a wider range of investment solutions.”
The proposed deal includes subadvisory agreements that must be approved by shareholders of the affected
funds. Following the acquisition, Perkins, Wolf, McDonnell and Company, LLC will change its name to
Perkins Investment Management LLC. In addition, the Janus Mid Cap Value Funds* will change their names
to Perkins Mid Cap Value Funds*, Janus Small Cap Value Fund* will be renamed Perkins Small Cap Value
Fund* and the Janus Small Company Value Funds will become Perkins Small Company Value Funds.
Outside of the U.S., the PWM-subadvised Janus Capital Funds PLC (JCF) – Janus US Strategic Value Fund
will change its name to JCF Perkins US Strategic Value Fund, subject to board and regulatory approvals.
“This represents the next step in the evolution of our business,” said Bob Perkins, CEO of PWM and
Company, LLC. “We’re excited about the increased opportunities and resources that Janus will be able to
About Janus Capital Group Inc.
Founded in 1969, Denver-based Janus Capital Group Inc. (Janus) is a recognized leader of growth and risk-
managed investment strategies. Our commitment to deliver for investors is rooted in our research-intensive
approach and relentless passion to gain a competitive edge.
At the end of March 2008, Janus managed approximately $187.6 billion in assets for more than four million
shareholders, clients and institutions around the world. Outside the U.S., Janus has offices in London, Tokyo
and Hong Kong. Janus Capital Group includes Janus Capital Management LLC, Enhanced Investment
Technologies, LLC (INTECH), and Capital Group Partners, Inc. In addition, Janus Capital Group currently
owns 30% of Perkins, Wolf, McDonnell and Company, LLC.
About Perkins, Wolf, McDonnell and Company, LLC
Perkins, Wolf, McDonnell and Company (PWM) is an asset management firm with a 24-year value investing
track record, currently managing more than $10 billion. With its industry experience, intensive research and
careful consideration for risk, PWM has established a reputation as a respected value-manager. PWM has been
the subadviser to Janus Small Cap Value Fund since its inception in 1987 and Janus Mid Cap Value Fund since
its inception in 1998. In 2003, Janus Capital Group Inc. purchased a 30% ownership stake in PWM.
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