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Affiliated Managers (AMG) to Acquire Majority Stake in Abacus
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Affiliated Managers Group (AMG - Free Report) has announced a deal to acquire a majority equity stake in Abacus Capital Group LLC, a leading privately owned real estate investment manager. The financial terms of the deal, which is expected to be closed in the coming quarter, are not disclosed yet.
Based in New York, Abacus Capital is focused on the $3.5 trillion U.S. multi-family sector. With nearly $2 billion in assets under management, the firm uses a research-driven investment method that identifies optimal markets and opportunities. Its organic growth is largely driven by “fundraising in both commingled funds and separate accounts, expanding its asset base while maintaining strong client retention and investment performance.”
Following the completion of the transaction, the senior management of Abacus Capital including founders CEO Benjamin Friedman and senior vice president Kyle Ellis will continue to hold a substantial portion of the equity and manage day-to-day operations. Additionally, Friedman and other senior members of the firm will enter into long-term employment agreements under the deal.
Jay C. Horgen, president and CEO of Affiliated Managers said, “With strong structural demand for multifamily real estate and the firm’s distinctive investment culture, Abacus is positioned for continued growth.”
The deal, the fourth one for Affiliated Managers this year and first in real estate investing, is expected to strengthen its participation in private markets. Earlier, in July, the company announced a deal to acquire a majority stake in Parnassus Investments. In April, it acquired a minority stake in OCP Asia, whereas, in February, the company acquired a minority equity interest in Boston Common Asset Management.
These, along with other such transactions over the past years, demonstrate Affiliated Managers’ strong balance sheet and liquidity position. Through such investments, the company is expected to continue generating meaningful growth.
Shares of Affiliated Managers have rallied 50.9% so far this year, outperforming the industry’s growth of 26.7%.
Image Source: Zacks Investment Research
Currently, Affiliated Managers carries a Zacks Rank #2 (Buy).
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Shares of Apollo Global Management, Inc. (APO - Free Report) , currently sporting a Zacks Rank 1 (Strong Buy), has gained 25.5% so far this year. The Zacks Consensus Estimate for 2021 earnings has been revised 23.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Franklin Resources, Inc. (BEN - Free Report) currently carries a Zacks Rank 2. The consensus mark for fiscal 2022 earnings has been revised 1.2% upward over the past two months. So far this year, the company’s shares have rallied 23.9%.
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Affiliated Managers (AMG) to Acquire Majority Stake in Abacus
Affiliated Managers Group (AMG - Free Report) has announced a deal to acquire a majority equity stake in Abacus Capital Group LLC, a leading privately owned real estate investment manager. The financial terms of the deal, which is expected to be closed in the coming quarter, are not disclosed yet.
Based in New York, Abacus Capital is focused on the $3.5 trillion U.S. multi-family sector. With nearly $2 billion in assets under management, the firm uses a research-driven investment method that identifies optimal markets and opportunities. Its organic growth is largely driven by “fundraising in both commingled funds and separate accounts, expanding its asset base while maintaining strong client retention and investment performance.”
Following the completion of the transaction, the senior management of Abacus Capital including founders CEO Benjamin Friedman and senior vice president Kyle Ellis will continue to hold a substantial portion of the equity and manage day-to-day operations. Additionally, Friedman and other senior members of the firm will enter into long-term employment agreements under the deal.
Jay C. Horgen, president and CEO of Affiliated Managers said, “With strong structural demand for multifamily real estate and the firm’s distinctive investment culture, Abacus is positioned for continued growth.”
The deal, the fourth one for Affiliated Managers this year and first in real estate investing, is expected to strengthen its participation in private markets. Earlier, in July, the company announced a deal to acquire a majority stake in Parnassus Investments. In April, it acquired a minority stake in OCP Asia, whereas, in February, the company acquired a minority equity interest in Boston Common Asset Management.
These, along with other such transactions over the past years, demonstrate Affiliated Managers’ strong balance sheet and liquidity position. Through such investments, the company is expected to continue generating meaningful growth.
Shares of Affiliated Managers have rallied 50.9% so far this year, outperforming the industry’s growth of 26.7%.
Currently, Affiliated Managers carries a Zacks Rank #2 (Buy).
Other Asset Managers Worth a Look
Shares of Apollo Global Management, Inc. (APO - Free Report) , currently sporting a Zacks Rank 1 (Strong Buy), has gained 25.5% so far this year. The Zacks Consensus Estimate for 2021 earnings has been revised 23.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Franklin Resources, Inc. (BEN - Free Report) currently carries a Zacks Rank 2. The consensus mark for fiscal 2022 earnings has been revised 1.2% upward over the past two months. So far this year, the company’s shares have rallied 23.9%.
Shares of SEI Investments Company (SEIC - Free Report) have gained 4.5% in the year-to-date period. The consensus estimate for this Zacks Rank 2 stock has been revised marginally upward over the past 60 days.