US/UK - Principal Global Investors has acquired a 74% stake in London-based Origin Asset Management for $66m (£40.7m).
Origin was founded in 2005 and has $3bn in assets under management as of April 1 2011, all in global equities. The agreement comes soon after it launched its Global Smaller Company and Emerging Market funds.
The firm's partners will retain a 26% stake in the business and will be reinvesting a "substantial share" of their consideration into funds managed by the firm, it said in a statement. Private holding company IPGL, who part-owned Origin, has agreed to sell their shares to Principal as part of the deal.
"We are delighted to be entering into this partnership," said Principal chief executive officer Jim McCaughan. "Origin's proven capabilities in managing global equities will be very attractive to our clients and advisors around the world."
Iowa-based Principal said the deal would enhance its global equity capabilities and further strengthen its multi-boutique model.
"Origin's strong reputation and distinct investment expertise complements our existing product suite," said McCaughan. "This partnership also increases our investment capabilities in emerging markets and in global small and mid-cap companies, where additional high-quality investment capacity is much sought after, but in relatively short supply."
Origin managing partner Nigel Dutson added: "We are excited to be teaming up with Principal Global Investors. This strategic partnership will allow us to continue the development of our business around the world while maintaining our operating independence, distinctive investment process and organisational culture."
The transaction is expected to close in October 2011, pending regulatory approval, and is the third acquisition announced this year as part of Principal Financial Group's 2011 capital deployment strategy
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