BrightSphere Investment Group Inc. Announces Agreement to Sell Campbell Global, LLC

Rhea-AI Summary

BrightSphere Investment Group (NYSE: BSIG) announced a definitive agreement to sell its 75% stake in Campbell Global to J.P. Morgan Asset Management for undisclosed terms. This deal also includes the acquisition of a 25% stake held by Campbell's management. Following the sale, BrightSphere will focus solely on Acadian Asset Management, which has $111 billion in assets under management (AUM) as of March 31, 2021. Acadian's strategies have consistently outperformed benchmarks, with significant percentages of strategies exceeding expectations over various time periods.

Positive

• BrightSphere will concentrate exclusively on its Acadian business, which is a market leader in the quantitative sector.
• As of March 31, 2021, Acadian manages $111 billion in AUM.
• Acadian strategies have demonstrated significant outperformance, with 86% beating benchmarks in the last quarter.

Negative

• None.

BrightSphere Investment Group Inc. (NYSE: BSIG) today announced that it has entered into a definitive agreement to sell its 75% ownership interest in Campbell Global, LLC, (“Campbell”) to J.P. Morgan Asset Management (“J.P. Morgan”), a division of JPMorgan Chase & Co. (NYSE: JPM). As part of the transaction, J.P. Morgan will also acquire the 25% ownership interest in Campbell held by Campbell management. Financial terms of the transaction were not disclosed.

% of Strategies by Revenue Outperforming vs Benchmarks as of Q1'21 (Graphic: Business Wire)

In addition to acquiring BrightSphere’s equity interest in Campbell, J.P. Morgan has also agreed to acquire BrightSphere’s co-investments in Campbell Funds. The transaction is subject to customary closing conditions and is anticipated to close in the third quarter of 2021.

Suren Rana, BrightSphere’s President and Chief Executive Officer said, “This transaction decidedly transforms our business from a multi-boutique asset manager to Acadian, a single, full-scale differentiated business that is a market leader in the quant sector. After the completion of the sale of Campbell Global and the other announced sale transactions in the coming months, BrightSphere’s sole business will be Acadian, with AUM of $111 billion as of March 31, 2021, which has been generating outperformance across multiple time periods through its quantitative strategies and solutions. As of March 31, 2021, 86%, 74%, 57%, 85% and 91% of Acadian’s strategies by revenue beat their benchmarks over the prior QTD, 1-, 3-, 5-, and 10-year periods. Additionally, the Company will have approximately $1.3 billion in Pro Forma cash¹.”

Morgan Stanley & Co. LLC acted as financial advisor to BrightSphere on the transaction, while Ropes & Gray LLP served as legal advisor to BrightSphere.

About BrightSphere

BrightSphere is a diversified, global asset management company. Through Acadian Asset Management, its sole operating subsidiary with approximately $111 billion of assets under management as of March 31, 2021², BrightSphere offers institutional investors across the globe access to a wide array of leading quantitative and solutions-based strategies designed to meet a range of risk and return objectives. For more information, please visit BrightSphere’s website at www.bsig.com. Information that may be important to investors will be routinely posted on our website.

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¹ Pro forma cash balance comprised of $451 million of cash on balance sheet as of 3/31, plus $625 million announced after tax proceeds from the sale of Landmark, completed June 2, 2021, plus $196 million anticipated after tax proceeds from the sale of Thomson, Siegal and Walmsley.
² Reflects the announced divestitures of Campbell Global, Thompson Siegal & Walmsley, and Investment Counselors of Maryland, and gives effect for the completed sale of Landmark Partners LLC, which was completed on June 2, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210621005708/en/

FAQ

What did BrightSphere Investment Group announce regarding Campbell Global?

BrightSphere announced the sale of its 75% ownership interest in Campbell Global to J.P. Morgan Asset Management.

What will BrightSphere focus on after selling its stake in Campbell Global?

After the sale, BrightSphere will focus solely on its business with Acadian Asset Management.

What is the current AUM of Acadian Asset Management?

As of March 31, 2021, Acadian Asset Management has $111 billion in assets under management.

How well have Acadian's strategies performed?

Acadian's strategies have outperformed benchmarks, with 86% exceeding expectations in the last quarter.

Is the financial detail of the transaction disclosed?

No, the financial terms of the transaction regarding the sale of Campbell Global were not disclosed.