Affiliated Managers agrees to pay $775m for UK firm
Affiliated Managers Group Inc. said it has agreed to acquire Pantheon Ventures, a London private equity fund-of-funds, for $775 million in cash. It is the largest deal in 17 years of business for AMG, a buyer of investment firms based in Beverly.
Pantheon manages $22 billion in various private equity funds for more than 300 clients, including pension funds, endowments, government bodies, and insurers.
The firm is currently owned by Russell Investments, a subsidiary of Northwestern Mutual Life Insurance Co.
Pantheon’s management team will continue to hold a stake in the company and will continue to run the firm. AMG could make additional cash payouts for Pantheon over the next five years, based on Pantheon's performance.
AMG's firms have a total of $253 billion under management.
Private equity has underperformed amid the credit crisis and recession, but AMG's chief executive, Sean M. Healey, said Pantheon was an attractive deal.
"Private equity is a core element of institutional investors’ overall asset allocation, and we believe that the asset class will continue to produce superior returns and attract new clients worldwide," he said.