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MetLife to buy Logan Circle from Fortress Investment

IBR Staff Writer Published 10 July 2017

American insurance giant MetLife has agreed to acquire investment manager Logan Circle Partners from Fortress Investment Group’s for nearly $250m in an all-cash deal.

The acquisition would also include the traditional fixed income asset management business of Fortress Investment.

As a fundamental research-based investment manager, Logan Circle Partners offers actively managed investment solutions across a wide range of fixed income strategies to institutional clients.

Logan Circle boasts of over 100 institutional clients and an excess of $33bn in assets under management, as of March 31. Logan Circle Partners and MetLife have a common focus when it comes to investment performance, risk management and client service.

MetLife chairman, president and CEO Steven A. Kandarian said: “This transaction is directly aligned with our enterprise strategy to deliver value by focusing on businesses with strong risk-adjusted internal rates of returns, low capital intensity and sustainable cash flows.

“Logan Circle Partners will bring a talented team with a track record of outperformance and an established consultant distribution platform to our Investment Management business.”

The senior investment team of Logan Circle Partners has been working together since 2000 and on an average has more than 20 years of investment management experience.

Logan Circle Partners founder, CEO and chief investment officer Jude T. Driscoll said that the collective resources in the fixed income range will enable the company to improve its best-in-class investment management and client service capabilities.

Driscoll added: “Our team's core focus and objectives will remain unchanged—delivering returns through research-driven portfolios built on in-depth fundamental research.

“This is an ideal combination for our investors and our team.”

Based on customary closing conditions and regulatory approvals, the transaction is anticipated to be completed in the third quarter.

Upon the possible completion of the Logan Circle Partners acquisition and also the expected separation of Brighthouse Financial in August, MetLife’s Investment Management business (MIM) would expand to more than $560bn in total assets under management. Out of these, MetLife will manage over $140bn of assets on behalf of third parties.

Image: MetLife headquarters in New York. Photo: courtesy of Postdlf from w/Wikipedia.org.