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Legg Mason – LM – And Permal Announce Acquisition of Fauchier Partners

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NYSE: LM) and affiliate Permal have announced a definitive agreement to acquire Fauchier Partners, a leading European based manager of funds of hedge funds, from BNP Paribas Investment Partners. Fauchier Partners will be combined with Permal, one of the largest alternative asset managers in the world, to create an institutionally focused platform (the ‘Group’) with approximately $24 billion in assets under management, offices in nine locations around the world, and a global investment team based in New York, London, Paris and Singapore.

The transaction is expected to close in the first quarter of 2013 and be accretive to Legg Mason’s earnings in the first year, reflecting Legg Mason’s ongoing commitment to create shareholder value. The terms of the transaction were not disclosed.

Permal and Fauchier Partners bring together two leading institutional businesses, with a global investment reach and little crossover, operating in different markets and specializing in different areas. With extensive pension fund and insurance clients in Europe, as well as Asia Pacific, Fauchier Partners also adds significant presence and capabilities to Permal’s already well established US institutional business.

The combined benefits of the Group include:

  • Materially deeper pool of investment talent, covering a wider range of alternative investment strategies, with Fauchier Partners particularly noted for equity hedged and event driven, and Permal for fixed income, credit and macro investing.
  • Formation of a global investment team with approximately 60  investment professionals, based in New York, London, Paris and Singapore, which will be led by Permal’s Robert Kaplan and Fauchier Partners’ Clark Fenton.
  • Continuity of respective portfolio management teams, with the additional benefits of broader research resources and capabilities of the Global Investment Team.
  • Opening up Permal’s $7 billion Managed Account Platform to Fauchier Partners clients. This is currently available to Permal clients and provides greater investor control, transparency and customisation possibilities.
  • Leading proprietary information systems and databases, leveraging the best technology from both firms.
  • Shared processes and controls, which will allow the Group to deliver superior services to clients.
  • Continued partnership with BNP Paribas Investment Partners, facilitating and enhancing both client service and new business development, with a global distribution agreement for Fauchier and Permal products.

Legg Mason – LM

Legg Mason (LM) is a global asset management firm with $648 billion in assets under management as of November 30, 2012. LM provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).

Permal

Permal Group is a leading global alternative asset manager, offering investment solutions through established multimanager funds and customized portfolios.

Fauchier Partners

Fauchier Partners is one of Europe’s largest providers of fund of hedge funds and customised portfolios to the institutional investment community, and as of November 30, 2012, had approximately $6 billion in assets under management.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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