City National Corporation has agreed to acquire a majority interest in Lee Munder Capital Group, a Boston-based investment firm that manages assets for corporations, pensions, endowment
City National Corporation has agreed to acquire a majority interest in Lee Munder Capital Group, a Boston-based investment firm that manages assets for corporations, pensions, endowments and affluent households.
Formed in 2000, Lee Munder Capital Group provides its clients with a variety of investment strategies, including small-cap growth, small- and mid-cap value, global multi-cap, large-cap core, international equities and fixed income. On average, the firm’s portfolio managers have more than 20 years of experience in the investment management industry.
Lee Munder Capital Group will merge with Independence Investments, a Boston-based institutional asset management firm in which City National holds a majority interest.
The combined company will become City National’s primary institutional asset management affiliate. With more than USD4bn of assets under management, it will operate under the Lee Munder Capital Group name and as an affiliate of Convergent Capital Management, the Chicago-based asset management holding company that City National acquired in 2003.
"The combination of high-quality product offerings from Lee Munder and Independence will strengthen and diversify the institutional asset management capabilities available to our clients," says Richard Gershen, executive vice president of wealth management for City National. "The combined firm will have the management and investment talent, financial strength, infrastructure and marketing capabilities needed to grow and provide clients with long-term investment performance and superior service."
Lee Munder Capital Group president Kenneth Swan will serve as the combined firm’s chief executive officer. He and chief investment officer Jeffrey Davis will oversee investment decisions and risk management. The firm’s management and investment teams and its founder, Lee Munder, will have a significant and broadly held minority interest in the business.
"We’re excited about our new partnership," says Swan. "City National and Convergent Capital Management have a strong track record of investing in entrepreneurial firms through partnerships that preserve each affiliate’s investment culture and operating autonomy."
With the addition of Lee Munder Capital Group, City National and its eight investment affiliates will manage or administer nearly USD49bn of client investment assets, including more than USD32bn under direct management.
Terms were not disclosed, but City National expects to complete the acquisition in the third quarter of 2009.
