June 16, 2003
Eaton Vance Spends $28M For Parametric Portfolio
Money manager Eaton Vance has acquired a majority stake in investment manager Parametric Portfolio Associates for $28 million in cash. This ends the company's ongoing search for new acquisitions.
Parametric is currently a privately held company with a specialization in managing separate accounts for wealthy clients and $4.7 billion in assets under management.
Eaton Vance will acquire 80% of the stock of Seattle-based Parametric, with the deal slated for completion in August. Following the acquisition, Parametric will become a subsidiary of Eaton Vance and will operate as a distinct and autonomous business unit.
"This is an important strategic acquisition for Eaton Vance," said James B. Hawkes, chairman and CEO of Eaton Vance, in a statement. "It enhances and diversifies our leadership position in tax-managed investing, and it significantly increases our presence and potential in the market for separately managed accounts."
Eaton Vance manages money for wealthy clients using municipal bond funds and tax-efficient trading strategies and has been searching for a potential acquisition for quite some time. In a statement issued last year, the firm stated it could spend up to $100 million. Eaton Vance purchased Atlanta Capital Management Co. and Fox Asset Management in 2001.
Wells Fargo Completes Montgomery Acquisition
Wells Fargo Funds Management has completed its acquisition of 11 funds with $1.4 billion in assets under management from Montgomery Asset Management. Montgomery, a subsidiary of Commerzbank, and Wells Fargo announced the transition last November. Gartmore Global Investments, meanwhile, is acquiring two of Montgomery's international funds and one long/short equity fund.
In particular, the Montgomery funds round out Wells Fargo's equity and fixed-income lineup, said Karla Rabusch, president of Wells Fargo Funds Management. The acquisition of the retail funds also expands Wells Fargo's institutional focus.
"Wells Fargo's significant resources will help Montgomery's fixed income, small-cap equity and emerging markets investment teams continue their track records," said Scott Tuck, Montgomery's chief executive officer. "We're confident our clients will have much to gain from this combination."
Copyright 2003 Thomson Media Inc. All Rights Reserved.