Affiliated Managers Group (AMG) has increased its investment in BlueMountain Capital Management, a credit alternatives manager which has been an AMG affiliate since 2007.
Under the terms of the transaction, all eight members of BlueMountain’s management committee, including its chief executive officer and co-founder Andrew Feldstein, as well as seven other partners, have entered into or renewed their long-term commitments with the firm.
In addition, a significant portion of the proceeds from the transaction will be invested in BlueMountain funds. The firm will continue to operate independently, with no changes in day-to-day operations.
Founded in 2003, BlueMountain manages more than USD7bn in assets across a diverse set of strategies in the credit markets. With offices in New York and London, BlueMountain is a leader in fundamental long/short, structured credit, arbitrage and equity derivatives.
“We are very pleased to significantly increase our investment in BlueMountain, which reflects the strength of our existing partnership as well as the firm’s excellent long-term growth prospects,” says Sean M. Healey (pictured), AMG’s chairman and chief executive officer. “With an outstanding management team and exceptional track record of generating strong absolute returns, BlueMountain has grown substantially since our initial investment. We look forward to continuing our successful partnership, which includes a range of strategic initiatives such as global distribution and succession-planning to position BlueMountain for the long term.”
“Our goal in founding BlueMountain was to build an outstanding culture of innovation and risk management that would allow the firm to outperform and deliver strong returns for investors, regardless of market conditions,” says Feldstein. “The partnership with AMG helps us execute that vision by more fully aligning management’s long-term interests with those of our investors, providing capital to invest in BlueMountain products and enhancing our brand and distribution capabilities globally.”
