Australian fund manager Perpetual is set to acquire 75% stake in Barrow, Hanley, Mewhinney & Strauss (Barrow Hanley) for A$465m ($319m).
The company signed an agreement with BrightSphere Investment Group (BSIG), the parent firm of Barrow Hanley, to execute the deal.
The move comes after Perpetual acquired Boston-based ESG investment firm Trillium Asset Management for $36m.
Based in the US, Barrow Hanley operates as a diversified investment manager with funds under management (FUM) of nearly $44.1bn. The company is headquartered in Dallas and has 95 employees including 54 investment professionals.
With this acquisition, Perpetual aims to triple its FUM from A$28.4bn to A$92.3bn.
Perpetual managing director and CEO Rob Adams said: “This is a compelling acquisition. It provides Perpetual with world-class investment teams, diversifies our client base by sector and geography, and presents us with significant growth opportunities in the Australian market and a formidable platform to scale our business internationally.”
As agreed, Barrow Hanley will retain its brand name and will continue to operate independently. Also, the investment and management team members will continue to hold the remaining 25% ownership.
The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions including regulatory approvals and green light from Barrow Hanley clients.
Separately, BSIG has signed another agreement to divest its equity interests in Copper Rock Capital Partners to Spouting Rock Asset Management and Copper Rock management.
The transaction is expected to generate total after-tax proceeds of nearly $15m, including seed capital but excluding upside sharing arrangements.