Affiliated Managers Invests In Wealth Management Venture

 | Jul 10, 2017 09:24PM ET

Affiliated Managers Group, Inc. (NYSE:AMG) recently announced that it acquired a minority equity interest in Wealth Partners Capital Group, LLC (“WPCG”). WPCG is a new venture that seeks to make investments in small wealth management firms through its three partner firms — Forbes Family Trust (“FFT”), MAI Capital Management and EP Wealth Advisors.

As part of the deal, Affiliated Managers transferred its ownership in FTT to WPCG, effective Jun 30, 2017. Further, John Copeland stepped down from its position as President of AMG Wealth Partners to launch WPCG.

Further, the management teams of all three firms will continue holding majority of the equity in their business and control of day-to-day operations.

Affiliated Managers’ wealth management affiliates will face no changes in their existing partnerships or economic terms with the company because of the deal.

In fact, with this new venture and existing affiliates, Affiliated Managers shall continue to implement its strategy of investing in the leading large-scale independent wealth management firms that seek succession planning solutions.

The company’s assets under management have been growing impressively over the last few years despite an industry-wide outflow trend. Further, it remains well positioned to gain from successful partnerships and global distribution capability. Notably, in 2016, Affiliated Managers acquired minority stakes in at least nine firms, with a goal to strengthen profitability.

Shares of Affiliated Managers have gained 20.2% in the last six months, outperforming the Zacks Categorized Financial - Investment Management industry’s rally of 14%.