Affiliated Managers Group Inc. (AMG) announced the completion of the previously declared additional investment agreement with AQR Capital Management, LLC. The financial terms of the deal were not divulged though.
On Dec 17, 2014, Affiliated Managers had announced a deal with AQR Capital to augment its minority investment in the leading investment management firm and also its affiliate. The after-tax net proceeds from the deal will be utilized by AQR Capital in its business.
Affiliated Managers will continue to hold equity interest in the hedge fund manager while AQR Capital’s principals will keep on operating its business independently with majority interest remaining with them.
Affiliated Managers expects this enhanced stake to boost its economic earnings per share by 60 cents in 2015. Moreover, this strategic partnership is expected to be beneficial for both the companies.
In 2004, Affiliated Managers had acquired a stake in AQR Capital, marking its entry into hedge fund management. AQR, with around $115 billion in assets under management as of Sep 30, 2014, offers a range of quantitatively driven hedge fund and traditional investment instruments to both institutional clients and financial advisors.
Currently, Affiliated Managers carries a Zacks Rank #3 (Hold). Some better-ranked investment management firms include Monroe Capital Corporation (MRCC), Ameriprise Financial, Inc. (AMP) and BlackRock, Inc. (BLK). While Monroe Capital sports a Zacks Rank #1 (Strong Buy), Ameriprise and BlackRock carry a Zacks Rank #2 (Buy).
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