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Multi-brand asset manager Resolute put up for sale -sources

· 03/15/2021 16:09
Multi-brand asset manager Resolute put up for sale -sources

By David French

- Private equity firm Kelso & Co is exploring a sale of Resolute Investment Managers which could value the multi-brand financial advisory firm at more than $1.5 billion, including debt, people familiar with the matter said on Monday.

Buyout firms Kelso and Estancia Capital Management, which also owns a stake in Resolute, have hired an investment bank to arrange the sale process, and potential buyers have been contacted to solicit their interest, the sources said.

The sources requested anonymity as the discussions are private. Kelso & Co and Resolute declined to comment. Estancia did not respond to a comment request.

The sale would be the latest in a wave of deals in the asset management industry. Warburg Pincus acquired a minority stake in Edelman Financial Engines, the companies confirmed to Reuters on Sunday, while Wells Fargo & Co WFC.N last month agreed to sell its asset management business to private equity firms GTCR LLC and Reverence Capital Partners. nL8N2LB01G nL4N2KT2H3

Private equity firms have been keen buyers of financial advisory firms in recent years due to their steady revenue generation and the ability to acquire other agencies within a fragmented industry to create a much larger business.

Irving, Texas-based Resolute has around $120 billion of assets under management through its relationship with more than 40 investment managers, including American Beacon, National Investment Services and Shapiro Capital Management, according to its website.

Kelso and Estancia completed the acquisition of Resolute in 2015. Since then, Resolute has added to its network by buying a number of majority and minority stakes in other investment firms.

Among those was the purchase in 2016 of a minority interest in ARK Investment Management, the firm founded by Catherine Wood which has shot to prominence in recent months due to the performance of its exchange-traded funds focused on disruptive technologies.


(Reporting by David French in New York
Editing by Sonya Hepinstall)

((davidj.french@thomsonreuters.com; +1 646 223 5211; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))