AMG adds new affiliate

Chicago-based sub-adviser

Alice Uribe

Thu 17 Dec 2009

Diversified asset management company Affiliated Managers Group (AMG) is set to add Chicago-based adviser Aston Asset Management (Aston) to its list of affiliates.

AMG has entered into a definitive agreement to acquire Aston's parent company Highbury Financial.

As part of the deal 1,748,879 shares of AMG common stock are expected to be issued in exchange for all of the outstanding equity of Highbury, and Highbury's sole operating subsidiary, Aston.

Once this transaction has been completed, Highbury's holding company operations will cease and all holding company costs will be eliminated according to an AMG release.

"We are very pleased to partner with Aston Asset Management, an established investment firm with an outstanding track record of performance and organic growth," AMG chief executive Sean Healey said.

Aston offers sub-advised investment products to the mutual fund and managed accounts markets. The firm distributes domestic equity, international, alternatives, sector, balanced and fixed income funds to consultants, registered investment advisors, broker-dealers and defined contribution plans.

The transaction has been approved by the boards of directors of AMG and Highbury and the board pf trustees of the Aston Funds.

Shareholder approval and regulatory approval is still required.