Legg Mason, Inc has completed its acquisition of The Permal Group, a funds-of-hedge-funds manager with $19.3 billion of assets under management, from Sequana Capital and Permal’s management.
Under the terms of its agreement with Sequana Capital and Permal, Legg Mason acquired an 80% interest in Permal at closing and has the right to purchase the remaining 20% over the next four years. The payment at closing was $800 million, of which $200 million was in the form of Legg Mason common stock (1,889,322 shares) and the remainder was in cash.
Permal will operate as a stand-alone business within Legg Mason Wealth Management. Permal’s entire management team, under the leadership of its chief executive officer, Isaac Souede, is continuing with the company under long-term employment agreements.
Raymond A. Mason, Legg Mason’s chairman and chief executive officer, said, “Founded over 30 years ago, Permal is among the oldest companies in the alternative asset space. Its history sets it apart from its peers, as it now has longstanding relationships with many premier hedge fund managers, while its consistent performance has enabled it to develop broad and deep relationships with world-class, geographically diverse distributors. We are particularly pleased that Permal’s entire team, under Isaac’s leadership, will be joining the Legg Mason family.”