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Affiliated Managers (AMG) to Buy Minority Stake in Boston Common

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With an aim to further enhance participation in environmental, social, and governance (“ESG”) investing, Affiliated Managers Group, Inc. (AMG - Free Report) has agreed to buy a minority equity interest in Boston Common Asset Management, LLC. Boston Common is an independent, partner-owned global equity manager that focuses on integrated ESG impact investing. The terms of the deal have not been disclosed yet.

Following the announcement of the deal, shares of Affiliated Managers lost 1.3%.

Notably, as of Dec 31, 2020, Boston Common had $3.9 billion in assets under management. The firm combines traditional financial analysis with in-house ESG research to identify innovative companies that not only offer attractive, risk-adjusted long-term investment returns but also provide products or services with positive societal impact.

The president and CEO of Affiliated Managers, Jay C. Horgen, stated, “We have deep respect for Boston Common’s consistent investment process, strong long-term track record, and extraordinary expertise in sustainable investing. Geeta Aiyer, founder of the firm, has been recognized as a leader in ESG and impact investing for more than 30 years.”

Allyson McDonald, the CEO of Boston Common, said, “We believe that AMG’s distribution platform and relationships with global asset owners will meaningfully enhance the growth of Boston Common’s integrated ESG capabilities and further diversify our client base. AMG’s collaborative partnership approach will support our efforts to address climate change, racial and gender inequity, and corporate governance as we enter the next phase of our growth and continue to build an enduring, multi-generational, independent investment firm.”

Following the completion of the deal, the senior partners of Boston Common will continue to hold a significant majority stake in the firm and will direct its day-to-day operations.

Our Take

Supported by a strong balance sheet and liquidity position, Affiliated Managers has considerable capability to invest in other companies and is expected to continue generating meaningful growth through new investments. The company has been targeting investments in alternatives and global strategies, given the strong preference of investors for the same.

Rising demand for equity and alternative strategies among institutional clients are expected to aid the company’s profitability, going forward.

Shares of Affiliated Managers have gained 64.5% over the past six months compared with the industry’s rally of 23.1%.






Currently, the company carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks from the same space are mentioned below.

AllianceBernstein Holding L.P.’s (AB - Free Report) earnings estimates for 2021 have moved up 12.1% over the past 60 days. The company’s shares have gained 33.6% over the past six months. At present, it carries a Zacks Rank #2.

The Blackstone Group Inc.’s (BX - Free Report) earnings estimates for 2021 have moved 10.5% upward over the past 60 days. The stock has appreciated 36.1% over the past six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameriprise Financial, Inc.’s (AMP - Free Report) earnings estimates for 2021 have increased 5.6% over the past 60 days. The company’s shares have gained 33.7% over the past six months. At present, it flaunts a Zacks Rank #1.

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