Private equity firm TA Associates has acquired a minority interest in ASB Holdings, the parent company of Arnhold and S Bleichroeder Advisers, a US mutual fund and investment advisory firm with USD45bn in assets under management.
At the same time, ASB Holdings has announced a plan to provide substantial equity incentives for its key investment and operational personnel, although the founding family shareholders will remain the majority owners of the firm.
Arnhold and S. Bleichroeder Advisers, which traces its heritage back to the mid-19th century, provides investment management services for the First Eagle family of mutual funds and for various institutional and high net worth clients through hedge funds and separately managed accounts. The firm's investment strategies include international value, global value, event-driven value and merger arbitrage.
'This is an important step in the evolution of our firm, and one which will permit us to continue to pursue our unique style of value investing,' says John P. Arnhold, co-president and co-chief executive of ASB Holdings. 'The transaction will allow us to facilitate the retention and attraction of key associates.'
Founded in 1968, TA Associates is one of the oldest private equity firms in the US and has long experience of investing in asset management firms. Managing more than USD10bn in capital from offices in Boston, Menlo Park and London, TA has made investments in 380 companies, including asset managers such as Affiliated Managers Group, AIM Management Group (now part of Invesco), Jupiter Investment Management and Numeric Investors.
'We are pleased to be affiliated with Arnhold and S. Bleichroeder,' says TA Associates senior managing director Andrews McLane, who has joined the ASB board of directors along with managing director Roger B. Kafker. 'We have great confidence that this venerable firm with its long history of success serving the investment needs of both individuals and institutions in the US and abroad will continue to flourish in the years ahead.'