Legg Mason has announced a deal to create a new global alternatives firm with over £18 billion in pro-forma assets under management and total assets of £20 billion.
A definitive agreement has been agreed to combine Permal, Legg Mason’s existing hedge fund platform, with EnTrust Capital, independent hedge fund investor and alternative asset manager headquartered in New York.
A statement read: “The firm will have a diverse offering of proprietary investment products with a significant number of institutional and high net worth investors.
“As a result of the combination, Legg Mason will own 65% of the new entity, branded EnTrustPermal, with 35% being owned by Gregg S. Hymowitz, EnTrust’s Co-founder and Managing Partner.”
Legg Mason also announced it has agreed to acquire a majority equity interest in Clarion Partners, a leading diversified real estate investment firm based in New York.
Described as “one of the largest independent real estate investors”, Legg Mason said Clarion Partners manages approximately $40 billion across the real estate risk/return spectrum. Clarion Partners will operate as the primary independent real estate investment affiliate for Legg Mason.
Legg Mason has also acquired a minority equity position in Precidian Investments, a firm specialising in creating innovative products and solutions and solving market structure issues, particularly with regard to the ETF marketplace.
