Madison Asset Management plans to partner with the Toronto-based international growth equity team of Hansberger Global Investors, manager of USD4 billion in assets.
The international growth team will retain its investment autonomy while gaining an equity stake in its new business.
Hansberger is a wholly owned subsidiary of Natixis Global Asset Management.
Upon closing of this transaction, the international growth team will operate as a standalone affiliate of Madison Asset Management called Hansberger Growth Investors.
"A key attraction to partnering with Madison is their history of independence, both in terms of business metrics and thinking," says Hansberger international growth's chief investment officer Tom Tibbles. "We're very much looking forward to this next chapter for our team, where we can concentrate on our investment strategy, gain a direct ownership interest in our business and utilize the operational and distribution support of Madison."
The international growth team, led by Tibbles, has been working together since 1996 and with Hansberger since 1999.
The Madison organisation was founded in 1974 and is an independent, employee-controlled investment firm.
Combined assets under management following this transaction are projected to exceed USD20 billion and the combined firm will have 110 employees, approximately half of whom are investment professionals.
"The international growth team's bottom-up, risk conscious equity approach is a perfect match for Madison's long standing approach to high-quality, high conviction stock investing," says Madison chairman Frank Burgess. "This is a great opportunity for us to partner with a well-established international growth team with an outstanding record. The team brings to us a proven expertise and client base, while Madison can offer experienced operations, marketing and distribution capabilities, along with a deep team of domestic and international investment professional colleagues."
Existing clients will not experience any changes in Hansberger's investment philosophy or process, while Madison gains an additional area of investment expertise.
The international growth team works primarily with institutional clients and manages the USD250 million Hansberger International Growth Fund (HITGX). The Hansberger international growth approach complements Madison's existing NorthRoad International investment strategies, which have a more value, developed-world bias.
The transaction is scheduled to be completed this summer, pending regulatory approvals.
RBC Capital Markets served as exclusive financial advisor to Natixis Global Asset Management in this transaction.