(Bloomberg) – Goldman Sachs Group Inc. is selling minority stakes in five hedge funds to Affiliated Managers Group Inc. for about $800 million.
AMG will acquire holdings in Winton Capital Group Ltd., Capula Investment Management LLP, Partner Fund Management LP, Mount Lucas Management LP and CapeView Capital LLP, the company said in a statement on Monday.
The money manager is buying the stakes from Petershill Fund I, which is managed by Goldman Sachs and which raised $1 billion in 2007. The fund invested in nine firms including Winton Capital and Capula Investment, both based in London.
Consistent with AMGs partnership philosophy, the management team of each firm will continue to have operating autonomy and substantial retained equity in their own businesses, Sean Healey, chairman and chief executive officer of AMG, said in the statement.
Goldmans Petershill fund competes with the likes of Dyal Capital Partners LP and Blackstone Group LP to buy holdings in hedge-fund firms, which sell stakes because a big-name investor can help them win institutional clients.
AMG said assets under management are expected to increase by $55 billion to almost $700 billion after the deal. AMG will pay cash, funding up to 50 percent of the transaction with equity.
