Legg Mason has agreed to combine Permal, its existing hedge fund platform, with EnTrust Capital, an independent hedge fund investor and alternative asset manager headquartered in New York with approximately USD12 billion in total assets.
The business combination will create a new global alternatives firm with over $USD6 billion in pro-forma AUM and total assets of USD29 billion and will have a diverse offering of proprietary investment products with a significant number of institutional and high net worth investors.
As a result of the combination, Legg Mason will own 65 per cent of the new entity, branded EnTrustPermal, with 35 per cent being owned by Gregg S Hymowitz, EnTrust's Co-founder and Managing Partner.
EnTrustPermal will be led by Hymowitz, who will become the Chairman and Chief Executive Officer of EnTrustPermal. Key investment and business professionals from both firms will continue to serve the investors of the new organisation. EnTrustPermal will have the global infrastructure, resources, investment professionals and underlying investment managers to source, research and structure investment opportunities worldwide on behalf of its international client base.
Joseph A Sullivan, Chairman and CEO of Legg Mason, says: "The combined EnTrustPermal brings together two leading names in the alternative space, creating a significant potential growth engine for Legg Mason. The team at EnTrust has a proven track record for driving significant organic growth through product innovation, with over 20 per cent growth annually since the financial crisis. We see meaningful opportunities to combine this innovation with Permal's blue chip client base, product offering and global footprint."
Gregg S Hymowitz, Managing Partner of EnTrust, says: "The combination of EnTrust and Permal creates a powerful organization in the hedge fund universe. EnTrustPermal's scale, resources and global investment talent will be able to deliver market differentiated proprietary investments to our over 700 combined institutional accounts and significant number of high-net worth investors. The complementary nature of our investment strategies, geographies and global investor/partner base dramatically springboards us over our competition. The EnTrust and Permal teams are eager to start delivering for our loyal investor base."
