Asset Management company,
) together with its affiliate, Permal Group announced the
successful completion of its acquisition of London-based
fund-of-hedge-funds firm - Fauchier Partners. Financial details
of the transaction are unknown.
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Fauchier will be integrated with Permal to form a new entity with
$24 billion worth AUM. The combined entity will operate through 9
offices and a global investment team based in New York, London,
Paris and Singapore.
Fauchier was formerly a part of BNP Paribas Investment Partners,
an asset management unit of
BNP Paribas SA
). It had assets under management (AUM) worth $6 billion at the
time of the acquisition.
The transaction is expected to be accretive to Legg Mason's
earnings in the first year and also demonstrates the company's
aim of providing exceptional services to its clients. As for
Permal, the transaction will enable the company to expand its
institutional business globally with the help of the acquired
firm's asset management brand and proficiency.
On the other hand, the deal widens Fauchier's scope and will lend
support to its expansion efforts with the commitment of providing
the best investment decisions to its clients. Overall, the
clients of Fauchier will have access to the industry's largest
managed account platforms provided by Permal.
The shares of Legg Mason rose to a new 52-week high at $31.40 on
March 13. We believe that Legg Mason has the potential to
outperform its peers in the long run based on its diversified
product mix, strategic acquisitions and leverage to the changing
market demography. Also, the company's restructuring initiatives
and cost-cutting measures are likely to improve its operating
Legg Mason currently has a Zacks Rank #2 (Buy). Other stocks to
watch out for in the industry are
Cohen & Steers Inc.
), both carrying a Zacks Rank #1 (Strong Buy).