Westwood Holdings Group (WHG), a Dallas-dependent expense management boutique and wealth management business, has agreed to purchase the asset administration enterprise of Salient Companions, a Houston-primarily based investment decision firm.
Westwood will make an upfront payment of $35 million on closing, with deferred payments of up to $25 million above several many years, upon pleasure of specific income retention and progress targets, Westwood explained in a press launch Thursday. Westwood will maintain its financial debt-no cost harmony sheet and will fund the upfront thought working with dollars on hand.
Salient specializes in methods concentrated on vitality and infrastructure, tactical option and serious estate investments. The business manages $4.5 billion in property. The acquisition will enhance Westwood’s overall belongings below administration by 32% to $18.4 billion, the business mentioned.
Beneath the deal, Westwood reported it is getting Salient’s 4 distinct investment decision abilities:
- Electricity Infrastructure – Salient’s Electricity Infrastructure methods total $2.5 billion in AUM and are readily available in the kind of independently managed accounts, open-conclude mutual cash, a shut-end fund and non-public money.
- Tactical Fairness – With $1.4 billion in AUM, Salient’s Liquid Solutions methods are hugely scalable. Sub-suggested by Broadmark Asset Administration LLC, the Tactical Equity tactics are offered in the variety of mutual resources and independently managed accounts. By way of this transaction, Westwood will also acquire a substantial minority ownership stake in Broadmark.
- Real Estate – Salient’s Actual Estate tactics overall $306 million in AUM and are obtainable in the form of mutual resources and individually managed accounts.
- Private Investments – Latest AUM in private investments totals $286 million.
The transaction is expected to close just before the stop of 2022 with important instant accretion to earnings.
Westwood, Salient and Broadmark’s techniques will continue beneath their current fund names until eventually close of the transaction and will be managed by the expense groups as they exist right now, with the very same said financial investment targets, the organization claimed.
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