Pimco is to acquire San Diego-based municipal bond shop Gurtin Municipal Bond Management.
As a result of the deal, the Newport Beach, California-based firm will boost its assets managed in dedicated muni strategies to $38 billion.
The acquisition marks the first major deal made by Pimco chief executive Emmanuel Roman, who took the helm at the bond behemoth in November 2016.
Terms of the deal have not been disclosed.
Gurtin had $14.2 billion in assets under management as of September 30. It has 27 investment professional focused on running muni strategies, which it distributes via a network of 150 family offices and RIAs.
The firm will maintain its San Diego and Chicago offices, and its investment team will continue managing its funds and separate accounts.
‘Pimco’s strategy is to grow mostly organically but we see exceptional value for clients in acquiring Gurtin, which is a premier muni investor with a like-minded culture that will enable us to provide clients with a more extensive and enhanced suite of muni strategies and services,’ Roman said.
‘We are investing in a broader and enhanced muni platform for clients which is backed by strong credit research and outstanding service.’
Pimco CIO Dan Ivascyn added: ‘We are excited by this combination of Gurtin’s and Pimco’s talented muni bond teams and the expertise in portfolio management that we will be able to offer clients in this incredibly important area of the fixed income markets.’
In a letter to clients, Gurtin CEO and CIO William R. Gurtin said he had turned down previous approaches and believed the Pimco acquisition would not change clients' experience.
You can read his full letter here.