American Beacon Advisors parent company Resolute Investment Managers is to acquire stakes in two boutique investment managers.
The firm has entered an agreement to buy a majority stake in SSI Investment Management and a minority position in RSW Investments. The terms of the deals have not been disclosed.
‘We’re always looking to diversify our line-up, and what we’re looking for is what we would describe as underappreciated investment excellence,' said Gene Needles (pictured), chairman and CEO of Resolute Investment Managers.
'We have hundreds of conversations with potential partners every year, and about one out of one hundred of those conversations brings something that we think is truly extraordinary and diversifying for the firm. Both of these fit the bill for us,’ he said.
Resolute Investment Managers has stakes in a number of asset managers, including owning American Beacon, which partners with third-party portfolio managers on subadvised funds.
As of September 30, 2018 Resolute’s affiliated companies had $71.2 billion in assets under management.
According to Needles, there is no turnover anticipated as a result of the deals. SSI and RSW will be autonomous subsidiaries, and Resolute will primarily provide operational support and distribution resources.
‘Generally speaking we don’t enter into a strategic relationship unless we can help from a distribution standpoint,' he said.
SSI Investment Management is based in Beverly Hills with $1.9 billion in assets under management. To find out more about the firm, read our Boutique of the Week article here.
RSW is a New Jersey-based RIA that manages municipal bond separate accounts with $2.2 billion in discretionary assets.
Needles said while Resolute could help SSI and RSW grow from a distribution standpoint, the acquisitions of these shops would benefit his parent company as well.
‘Although we are somewhat agnostic when we look at these firms, aspirationally we have some very large goals for the organization, and those are to have half of our assets ultimately in fixed income and alternatives,’ he said. ‘These acquisitions help us achieve that diversification goal much quicker than we could organically.’