Affiliated Managers Group (AMG), a global asset management company, is to acquire a majority equity interest in SouthernSun Asset Management.
After the closing of the transaction, SouthernSun's partners will continue to hold a substantial portion of the equity of the business and direct its day-to-day operations.
With approximately USD5bn in assets under management, SouthernSun was founded in 1989 and manages long-term, concentrated portfolios through a fundamental, research-intensive investment process. The firm offers US small- and mid-cap strategies and a recently launched global investment strategy. As of 30 September 2013, SouthernSun's US institutional strategies rated in the top five percent of their respective categories for the trailing one-, three-, five- and ten-year periods, according to eVestment.
The firm's flagship SouthernSun Small Cap Fund is rated five stars by Morningstar in the small blend category. The fund's performance is in the top percentile for its category for the trailing three-, five- and ten-year periods. In 2012, SouthernSun launched its US Equity Fund, which is currently outperforming the S&P 500 by more than 500 basis points on a trailing one-year basis, according to Morningstar.
"AMG continues to attract the industry's best boutiques, and SouthernSun has distinguished itself with world-class investment products. With a long-term track record of generating exceptional returns for investors, and outstanding prospects for future growth, SouthernSun is an excellent addition to our Affiliate group," says Sean M Healey (pictured), AMG's chairman and chief executive officer. "We believe that the firm's measured, disciplined approach to identifying value in prospective investments will enable it to continue to generate extraordinary growth in the years ahead."
Michael W Cook, Sr, SouthernSun's founder, chief executive officer and chief investment officer, says: "Through AMG's partnership approach, we will retain our operating autonomy and ability to continue to employ the uniquely patient approach to investment management that has been so essential to our success. The partnership with AMG will also position our team for the long-term by facilitating equity transfers over time to the next generation of partners here at SouthernSun."
As part of the transaction, SouthernSun's senior professionals have agreed to long-term commitments with the firm, and the SouthernSun funds will become part of AMG's mutual fund platform. In addition, AMG will acquire the entire ownership interest of the outside investors in the firm. The terms of the transaction have not been disclosed.
