Bank of America Corporation BAC announced an agreement between its alternative investment business – Merrill Lynch Alternative Investments LLC ("Merrill Lynch") – and Neuberger Berman, a private, independent, employee-owned investment management firm.
Under the contract, which is expected to close in August this year, Merrill Lynch will sell the management rights of some traditional non-registered and 40-Act-registered private equity fund of funds to Neuberger Berman.
Though terms of the deal were not divulged by the company, the deal is said to involve around $1 billion worth of private equity fund of funds managed by Merrill Lynch.
Neuberger Berman, which provides investment management and financial planning, fiduciary services, and trust services to its clients, was selected after Merrill Lynch carried out a broad due diligence procedure to analyze the firm’s private equity investment expertise, 40-Act capabilities and commitment to client service.
After the completion of the transaction, certain chief private equity Merrill Lynch professionals along with Merrill Lynch funds will be added to Neuberger Berman. The idea is to capitalize on the growing demand for traditional and registered alternative investments, especially private equity, with the combined expertise of both firms.
While the deal will provide Neuberger Berman exposure to the wide customer base of Merrill Lynch, it will aid Merrill Lynch in providing enhanced services to clients. The teamwork is expected to result in best-in-class solutions for clients with the help of new and innovative products.
Currently, Bank of America carries a Zacks Rank #3 (Hold). Some better-ranked banks include SVB Financial Group SIVB, Commerce Bancshares, Inc. CBSH and KeyCorp. KEY. All these stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment