Missouri-based brokerage firm Stifel Financial has agreed to sell its wholly-owned asset management subsidiary Ziegler Capital Management (ZCM) to 1251 Capital Group.
The financial terms of the deal have not been divulged.
As per the terms of the agreement, 1251 Capital Group will buy a majority stake in ZCM. The company’s representatives will join the asset management firm’s board, once the deal closes.
The current ZCM’s management team will continue to operate independently managing regular operations.
1251 Capital Group co-CEO Michael Wilson said: “The team at Ziegler Capital Management has an impressive record of success, and the firm’s diversified client base and range of specialised investment strategies makes ZCM an excellent fit with 1251.”
Headquartered in Chicago, ZCM provides specialised investment strategies in equity and fixed income markets.
As of 30 September 2019, ZCM had $12.4bn in assets under management. The deal, however, does not cover fixed income assets of $1.9bn.
The company has more than 80 employees and has additional offices in Milwaukee and St. Louis.
1251 Asset Management president John Hailer said: “We look forward to partnering with the ZCM team to continue bringing to clients innovative and differentiated investment strategies across a range of channels and investment vehicles.
“The opportunity to collaborate with such a high quality team with deep domain expertise is very exciting.”
The deal is expected to close in the first quarter of 2020. However, the closure is subject to green light from ZCM’s institutional and mutual fund clients as well as other conditions.
Stifel has been on buying spree this year. It agreed to acquire Mooreland Partners in April followed by a $52m deal in June to buy the capital markets arm of Canadian investment bank GMP Capital.
In August, the Missouri-based firm acquired certain assets of George K. Baum & Company (GKB).