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Principal Global Investors to acquire 55% stake in Liongate

Global asset manager Principal Global Investors has entered into an agreement to purchase a majority stake of 55% in alternative investment boutique, Liongate Capital Management (Liongate), for an undisclosed sum.

The shareholding acquisition in Liongate, which mainly concentrates on managing portfolios of hedge funds, will strengthen alternative investment capabilities as well as assist in expanding its product offerings into customized multi-asset and hedge fund services.

This agreement will also enable Liongate to access Principal’s global presence and distribution networks, as well as product development expertise and best-practice support infrastructure.

Following the completion of the transaction, which is likely to happen in the second quarter of 2013 after receiving regulatory approval, Liongate partners will retain the remaining 45% share.

Sandler O’Neill + Partners and Fenchurch Advisory Partners acted as advisors on the transaction.

Established in 2003, Liongate managed nearly $2.1bn in assets under management as of 1 January 2013, across various commingled funds and dedicated client portfolios.

Principal Global Investors managed $281.5bn in assets as of 31 December 2012, mainly for retirement plans and other institutional clients.