While AMG will hold an equity interest in Abax, the firm’s senior partners will continue to hold majority of the equity of the business and direct the firm’s day-to-day operations, an AMG-issued statement said.
AMG chief executive and chairman Sean Healey said: “The addition of Abax will enhance the diversity and breadth of AMG’s existing product set, and from its base in South Africa, the firm is well positioned to benefit from the region’s outstanding growth prospects.”
“We have deep respect for the experience and talent of the management team, and believe that with its outstanding performance and consistent investment approach, Abax has tremendous opportunities for long-term growth.”
Abax senior partner Anthony Sedgwick reinforced that the firm will maintain affiliate autonomy while gaining access to scale.
“In addition, our partnership with AMG provides access to the scale and resources of a leading global asset management company,” he said.
“AMG’s strategic capabilities, which have been uniquely successful in enhancing the organic growth of boutique managers across key client markets around the world, will meaningfully augment our forward growth prospects.
“We are excited to work with our new partners across a number of initiatives, including product development and distribution globally,” said Mr Sedgwick.
As part of the transaction, Abax’s senior partners have agreed to long-term commitments with the firm.
The transaction is expected to close by 31 December 2015.
