Fortress Investment Group has signed a definitive agreement to acquire Logan Circle Partners from Guggenheim Partners.
Logan Circle is a fixed income asset manager with approximately USD12bn in assets under management.
It manages portfolios for institutional investors in strategies that include core/core plus, short, intermediate and long duration, corporate and high yield.
With this acquisition, Fortress will expand its investment management business to offer fixed income products to investors worldwide.
Fortress plans to enhance the Logan Circle platform over time to serve an expanded client base.
"We believe this is a unique opportunity to diversify and expand Fortress’s investment management business. Logan Circle has a high quality management team and a fundamental credit focus which is complementary to our existing approach," says Daniel Mudd, Fortress’s chief executive officer.
Jude Driscoll, founder of Logan Circle Partners, adds: "I’m extremely excited for Logan Circle to join Fortress. While our investment approach and the day-to-day operations of Logan Circle will remain the same, Fortress’s size and global infrastructure, along with its intellectual capital and transaction flow will meaningfully enhance our ability to build our platform."
Under the terms of the agreement, Fortress will pay approximately USD21m in cash with the potential for an additional payment at the end of 2011, contingent on the growth and performance of Logan Circle’s business.
The transaction is expected to close by the end of the second quarter of 2010 and is subject to customary approvals.
Post closing, Driscoll and the senior leadership team at Logan Circle will continue to manage the business, which will report directly to Mudd.
