US-based Northern Lights Capital Group, a private equity firm, and Australia-based Treasury Group, a financial services company, are combining to form a boutique asset management platform. The new entity will be a joint venture that will hold interests in boutique asset managers.
The combined group has more than $46 billion in assets under management as of June 30, 2014.
“Both Treasury Group and Northern Lights share the same philosophy around growing boutique asset managers – and will continue to do this under the combined structure. At the time of the transaction there will be 21 portfolio companies – 10 US companies and 11 companies outside of the US in Australia, the UK and India,” Jack Swift, managing director at Northern Lights Capital Group tells Private Equity International.
Upon closing, management and operations expect to be integrated and the business plans to operate as one group under the direction of a common Board of Directors. Shares of Treasury Group will continue to trade on the Australian Stock Exchange.
The combined offering will provide capital, strategic and operational support, and dedicated distribution efforts to boutique asset managers, Swift explains. “We believe by providing a combination of these resources, we can give our boutiques the greatest opportunities for investment success.”
With the new entity both companies will have access to new markets, and the opportunity to expand service delivery.
The transaction is expected to close in the fourth quarter of this year, subject to regulatory approval.