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AllianceBernstein Acquires AnchorPath, Adds $400 Million AUM

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AllianceBernstein L.P. — in which AllianceBernstein Holding (AB - Free Report) owns nearly 36% stake — has acquired Stamford, CT-based AnchorPath Financial, LLC. While the financial terms of the transaction are not yet disclosed, it added more than $400 million worth of assets under management (AUM) to the company’s books.

As of May 31, 2020, its preliminary month-end AUM was $596 billion.

AnchorPath, founded in 2009, offers a cost-effective strategy that integrates proprietary, pro-active risk control while providing liquidity and transparency. The firm has been integrated with AllianceBernstein’s Multi-Asset Solutions business.

Daniel Loewy, head of AB Multi-Asset Solutions, said “Through this acquisition, AB adds another proven and differentiated investment capability to its risk-managed platform. AnchorPath uses a unique lens to construct solutions that enable funds to outperform relevant indexes with decreased downside risk and will benefit from AB's distribution expertise.”

AnchorPath's principal, Marshall Greenbaum has joined AllianceBernstein as part of the deal.

AllianceBernstein has been undertaking efforts to diversify revenues and footprint. In April 2019, it acquired U.K.-based global financial service provider, Autonomous Research. The deal strengthened the company’s scale and global reach.

Shares of this Zacks Rank #1 (Strong Buy) company have rallied 61.7% over the past three months, outperforming the industry’s 49.7% rally. You can see the complete list of today’s Zacks #1 Rank stocks here.

Asset managers across the globe are making consolidation efforts to improve market share and profitability amid a tough operating backdrop. Also, the current rise in passive, low-cost index funds has been taking a toll on the industry players’ financials. In February, Franklin Resources Inc. (BEN - Free Report) announced an all-cash deal to acquire Legg Mason (LM - Free Report) for $4.5 billion. Last year, Invesco (IVZ - Free Report) had acquired OppenheimerFunds Inc. and in 2018, it had completed the buyout of Guggenheim Partners LLC’s ETF business.

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