Thu, Apr 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Legg Mason and Permal acquire Fauchier Partners

Thursday, December 13, 2012
Opalesque Industry Update: Legg Mason, Inc. and affiliate Permal 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.
Joe Sullivan, Interim Chief Executive Officer of Legg Mason: “This transaction significantly expands Permal’s institutional business, creating a global institutional capability across geographies and client profiles. The strength of this combined platform will be an important driver of Permal’s future growth as clients in the alternatives sector increasingly look for providers with size and scale. This is an important step to growing our alternatives capabilities through Permal. This deal will be accretive to the Legg Mason shareholder in the first year, reflecting our ongoing commitment to creating shareholder value.”

Isaac Souede, Chief Executive Officer of Permal: “This transaction is highly beneficial for both sets of our clients, bringing together leading alternatives teams and further developing the Group’s investment resources, with significant investment presence in New York and London. Strategically, Fauchier Partners meets all of our criteria, for it accelerates the development of our institutional presence, enhances the European and Asian business, and strengthens the Permal employee talent pool. Alongside Legg Mason, we saw significant opportunities from this transaction to further our joint strategic goals and worked closely to bring this to fruition.”

Clark Fenton, Chief Executive Officer of Fauchier Partners: “This is a very exciting strategic development for our business. Combining Fauchier Partners with Permal gives our clients the best of both firms. We maintain our existing investment process, but have the additional benefit of a much wider pool of investment talent and resources. We get the benefits of scale, increasing our buying power and global reach. Crucially our clients will be able to access one of the industry’s largest managed account platforms, which is of particular relevance to our growing customised account offering.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. South Korea’s state fund plans to double alternative investments[more]

    From Businessweek.com: Korea Investment Corp., the nation’s $72 billion sovereign wealth fund, plans to double alternative investments over the next 10 years to compensate for declining returns from stocks and bonds. “We’ll have to embrace the lower return expectation from traditional assets and tha