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AMG to acquire Russell’s Pantheon subsidiary

Affiliated Managers Group is to acquire the business of Pantheon Ventures, a Russell Investments subsidiary.

Under the terms of the purchase agreement, AMG will pay approximately USD775m in cash with the potential for additional payments over the next five years, contingent on the growth of Pantheon’s business.

Following the closing of the transaction, Pantheon’s management team will own a meaningful stake in the partnership and continue to direct the firm’s day-to-day operations.

Pantheon is a private equity fund of funds manager, delivering private equity investment solutions to a broad range of clients for over 25 years. It manages regional funds of funds in Europe, the US and Asia, as well as global secondary funds of funds, global infrastructure fund of funds and customized separate account programmes.

AMG is an asset management company with equity investments in boutique investment management firms. Its partnership approach allows each Affiliate’s management team to own significant equity in their firm while maintaining operational autonomy.

Sean M. Healey, AMG’s president and chief executive officer, says: “We are excited to partner with Pantheon, a global leader in private equity fund of unds. 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. We view the fund-of-funds structure as an especially attractive way to participate in this important asset class, given the stability and consistency of its revenue stream, as well as the scalability of its investment platform. With Pantheon’s outstanding record of outperformance across a broad suite of investment strategies, long history of excellent client service and significant presence in key global markets, the firm is extremely well positioned to grow its business.”

Alastair Bruce, managing partner at Pantheon in London, adds: “We are enthusiastic about our partnership with AMG. Pantheon operates with a distinct and highly collaborative culture, and it is of paramount importance to our clients and staff that our new partner provides operational autonomy and a stable ownership model through long-term commitments and partnership equity incentives. The stability provided by the partnership with AMG, along with its multi-generational approach to equity incentives, is a powerful combination as we strengthen Pantheon’s leading position in private equity fund-of-funds.”

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