MetLife has agreed to acquire Philadelphia-based bond group Logan Circle Partners for $250 million.
The insurer will acquire Logan Circle from Fortress Investment Group in a transaction that is expected to close at the end of the third quarter.
The $33 billion group Logan Circle Partners was originally acquired by Fortress in 2012 for $21 million.
The upcoming acquisition will be in cash and will not affect Metlife's $3 billion share buyback program, the firm said in a statement, which is expected to be completed by the end of the year.
After the deal and following the spinout of Brighthouse Financial next month, MetLife will have over $560 billion in assets under management, including $140 billion managed by third-party groups.
Logan Circle Partners runs over 20 strategies that span US fixed income, short-term fixed income, global fixed income and commingled vehicles.
The shop currently runs the $10.6 million Logan Circle Partners Core Plus fund, its only mutual fund which is managed by Andrew Kronschnabel, Alfio Leone and Scott Moses.
It also subadvises on a number of mutual funds, including the $809.2 million Russell Investments Short Duration Bond fund and the $728.2 million Transamerica Emerging Markets Debt fund.
According to a MetLife spokesperson, the acquisition will not affect any of Logan Circle’s current subadvisory relationships.
Steven A. Kandarian, president and CEO, MetLife, said: ‘This transaction is directly aligned with our enterprise strategy to deliver value by focusing on businesses with strong risk-adjusted internal rates of returns, low capital intensity and sustainable cash flows.’
‘Our team's core focus and objectives will remain unchanged—delivering returns through research-driven portfolios built on in-depth fundamental research,’ said Jude Driscoll, founder, chief executive and chief investment officer of Logan Circle Partners.