US - The Merrill Lynch Investment Managers (MLIM) executives leading the buyout of the firm's Los Angeles-based business will use the group's former Hotchkis & Wiley name, once the deal is finalised at the end of this month.
The new firm, Hotchkis & Wiley Capital Management, expects to have about $4.5bn in assets under management once the deal closes. Hotchkis & Wiley plans to ask shareholders to merge existing Merrill offerings into the Hotchkis & Wiley roster, according to its registration filing with the US Securities and Exchange Commission (SEC).
The management team headed by George Davis, lead portfolio manager in Los Angeles, has bought the business for an undisclosed amount. Davis will also be taking 45 of MLIM's Los Angeles staff.
MLIM's decision to sell its Los Angeles business to the management buyout team resulted from the departure of its lead international equity managers in June - Sarah Ketterer, Harry Hartford and James Doyle. The trio, who were part of Hotchkis & Wiley before it was bought out in 1996, left MLIM to form their own business, Causeway Capital Management.
Following the departures, MLIM handed the respective responsibilities to the London based team led by James Macmillan.
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