Deals & People July 7, 2008

Ameriprise to Acquire J.&W. Seligman

Ameriprise Financial, Inc. has agreed to acquire asset management firm J.&W. Seligman&Co. Incorporated.
Reported by

The deal is reported to total $440 million, and is likely to close in the fourth quarter of 2008.

According to a company statement, benefits to Ameriprise from the acquisition include:

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  • The addition of Seligman’s approximately $3 billion in hedge fund assets substantially increases the company’s alternative investment activities;
  • Seligman’s investment management capabilities add breadth and depth to Ameriprise’s RiverSource multi-investment boutique strategy. The transaction adds Seligman’s technology investment team, led by Paul Wick, and its accomplished growth team, while its value team complements strong RiverSource value offerings;
  • The transaction accelerates the company’s third-party distribution reach and scale, and substantially increases its existing wholesaling force.

Seligman will retain its investment management teams and will continue to use its brand names under the RiverSource umbrella.

“This transaction will strengthen two great organizations, bringing together complementary talent that will create an even stronger asset management business,” said Brian Zino, president of J. & W. Seligman, in the announcement. “As part of the larger Ameriprise Financial organization, Seligman will be well positioned to increase distribution, grow assets and expand our service offerings to clients and their advisers.”

New York-based Seligman manages approximately $18 billion in assets in open- and closed-end funds, hedge funds, and institutional accounts.

Deals & People July 7, 2008

Janus Boosts Stake in Value Manager

Janus Capital Group Inc. has announced plans to pump another $90 million into U.S. value manager Perkins, Wolf, McDonnell and Company, LLC.
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The Denver-based fund company says that would represent an additional 50% ownership interest in the Chicago-based money manager, once the transaction closes later this year. According to a press release, acquiring a respected value-oriented investment firm enables the company to offer a more broadly diversified range of investment products and complements Janus’ growth and risk-managed product lineup.

Janus also announced plans to launch Janus Adviser Perkins Large Cap Value Fund for U.S. investors in late 2008. The fund, which is based on an existing institutional strategy, will be managed by PWM co-portfolio managers Tom Perkins and Kevin Preloger.

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Name Changes

The proposed deal includes subadvisory agreements that must be approved by shareholders of the affected funds. Following the acquisition, Perkins, Wolf, McDonnell and Company, LLC will change its name to Perkins Investment Management LLC. In addition:

  • the Janus Mid Cap Value Funds will change their names to Perkins Mid Cap Value Funds
  • the Janus Small Cap Value Fund will be renamed Perkins Small Cap Value Fund and
  • the Janus Small Company Value Funds will become Perkins Small Company Value Funds.

Outside of the U.S., the PWM-subadvised Janus Capital Funds PLC – Janus US Strategic Value Fund will change its name to JCF Perkins US Strategic Value Fund, subject to board and regulatory approvals.

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