AMG Announces Investment in Abacus Capital Group
September 28 2021 - 8:00AM
Affiliated Managers Group, Inc. (NYSE: AMG), a leading partner to
independent active investment management firms globally, has
entered into a definitive agreement to acquire a majority equity
interest in Abacus Capital Group LLC (“Abacus”). After the closing
of the transaction, Abacus senior management will continue to hold
a substantial portion of the equity of the firm and direct its
day-to-day operations, consistent with AMG’s partnership approach,
which is recognized by the marketplace for preserving the operating
and investment independence of AMG
Affiliates. Abacus
is an independent, privately owned real estate investment manager
focused on the $3.5 trillion U.S. multifamily sector. With
approximately $2 billion in assets under management, Abacus
integrates the best practices of operator and allocator platforms,
bringing its deep capabilities in asset management and development
to execute on its value-add and core investment strategies. Led by
Founders Chief Executive Officer Benjamin Friedman and Senior Vice
President Kyle Ellis, Abacus’ experienced investment team utilizes
a research-driven investment process to identify optimal markets
and opportunities, with proven results. Since its founding in 2004,
Abacus’ organic growth has been driven by successful fundraising in
both commingled funds and separate accounts, expanding its asset
base while maintaining strong client retention and investment
performance.
“We are very pleased to partner with Abacus, a high-quality
business with excellent growth prospects in an attractive area of
real asset investing,” said Jay C. Horgen, President and Chief
Executive Officer of AMG. “AMG’s unique partnership approach,
including our proven succession planning and incentive alignment
capabilities, continues to attract outstanding firms – including
alternative firms – that wish to build an enduring franchise,
preserve their independence, and leverage AMG’s institutional
capabilities. With strong structural demand for multifamily real
estate and the firm’s distinctive investment culture, Abacus is
positioned for continued growth. I am pleased to welcome Ben, Kyle,
and their partners to our Affiliate group.”
“We are excited to partner with AMG, given its three-decade
history of successful partnerships with independent investment
firms and broad range of strategic capabilities,” said Mr.
Friedman. “In selecting an institutional partner, we were attracted
to AMG’s operating philosophy and investment approach, which will
enable us to preserve our entrepreneurial culture, implement a
robust incentive plan for the next generation of Abacus leadership,
and expand our ability to execute for our stakeholders while
continuing to build an enduring, multi-generational, independent
real estate investment firm. Through retained equity ownership in
Abacus, the management team and I will remain strongly aligned with
our clients, and we look forward to continuing to execute on our
strategy.”
The terms of the transaction were not disclosed. Mr. Friedman
and members of the senior management team will enter into long-term
employment agreements with the firm. The transaction is expected to
close in the fourth quarter of 2021.
About AMGAMG is a leading partner to
independent active investment management firms globally. AMG’s
strategy is to generate long-term value by investing in a diverse
array of high-quality independent partner-owned firms, through a
proven partnership approach, and allocating resources across AMG’s
unique opportunity set to the areas of highest growth and return.
AMG’s innovative partnership approach enables each Affiliate’s
management team to own significant equity in their firm while
maintaining operational and investment autonomy. In addition, AMG
offers its Affiliates growth capital, global distribution, and
other strategic value-added capabilities, which enhance the
long-term growth of these independent businesses, and enable them
to align equity incentives across generations of principals to
build enduring franchises. As of June 30, 2021, AMG’s aggregate
assets under management were approximately $756 billion across a
broad range of return-oriented strategies. For more information,
please visit the Company’s website at www.amg.com
About Abacus Capital GroupFounded in 2004,
Abacus has a well-established track record of achieving attractive,
risk-adjusted returns for investors by acquiring, redeveloping,
developing, managing, and selling multifamily properties throughout
the U.S. Senior professionals at Abacus have an average of 25 years
of multifamily investment management experience. More information
is available at www.abacuscapitalgroup.com
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal
securities laws, and could be impacted by a number of factors,
including those described under the section entitled “Risk Factors”
in AMG’s most recent Annual Report on Form 10-K, as such factors
may be updated from time to time in the Company’s periodic filings
with the SEC, which are accessible on the SEC's website at
www.sec.gov. AMG undertakes no obligation to publicly update or
review any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as required
by applicable law. From time to time, AMG may use its website as a
distribution channel of material Company information. AMG routinely
posts financial and other important information regarding the
Company in the Investor Relations section of its website at
www.amg.com and encourages investors to consult that section
regularly.
Investor Relations:Anjali Aggarwal
Media Relations:Ann Imes
+1 (617) 747-3300ir@amg.compr@amg.com
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