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Affiliated Managers (AMG) Acquires Minority Stake in Comvest

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Affiliated Managers Group, Inc. (AMG - Free Report) has acquired a minority equity interest in Comvest Partners. However, terms of the transaction have not been disclosed yet.

Comvest is a middle-market private equity and credit investment firm, which provides financial, strategic and operational support as well as business development assistance to growing companies. It has $3.7 billion in assets under management.

Affiliated Managers’ president and CEO, Jay C. Horgen, stated, “Comvest operates in the highly attractive segments of private credit and private equity. Our partnership with Comvest demonstrates the ongoing appeal of AMG’s innovative model, including our ability to provide growth capital and our proven distribution capabilities to both alternative and traditional firms.”

Horgen added, “Against the backdrop of strong client demand for private equity and private credit, and increasing client allocations to this segment of the market in particular, Comvest has outstanding forward prospects.”

Notably, Comvest will likely invest 100% of the transaction proceeds into future funds to support the firm’s growth initiatives.

The senior partners of Comvest are expected to continue to own a significant majority of the equity of the business.

Michael Falk, CEO and managing partner of Comvest, said, “Our new partnership with AMG, and its commitment to invest alongside our LPs, brings significant competitive advantages to our business, and amplifies our strong long-term growth potential. AMG’s unique partnership approach will enable us to preserve our entrepreneurial culture while continuing to focus on delivering long-term value for our clients.”

Affiliated Managers, with its strong balance sheet and liquidity position, has considerable capability to invest in other companies and is expected to continue generating meaningful growth through new investments. It remains well-positioned for growth, based on successful partnerships and focus on strengthening retail market operations.

Shares of Affiliated Managers have lost 24.3% over the past year against 6.3% growth recorded by the industry.






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

Other Stocks to Consider

A few other top-ranked stocks from the same space are Cohen & Steers Inc. (CNS - Free Report) , Legg Mason, Inc. and Artisan Partners Asset Management Inc. (APAM - Free Report) . Each of these stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cohen & Steers’ Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6% over the past 60 days. Moreover, the stock has rallied 14.5% in the past three months.

Legg Mason has witnessed an upward earnings estimate revision of 3% for the current fiscal year over the past 60 days. The company’s shares have gained 31.8% in the past three months.

The consensus estimate for earnings of Artisan Partners has been revised 6.7% upward for the current year over the past 60 days. The stock has gained 22.8% over the past three months.

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