AMG buys, invests in asset managers

Affiliated Managers Group Inc., a Prides Crossing, Mass.-based asset management company, has agreed to invest an undisclosed amount in two firms, Gannett Welsh & Kotler LLC and Harding Loevner LLC.

AMG has acquired the asset management business of Gannett Welsh & Kotler, a Boston-based investment management unit of The Bank of New York Mellon Corp.

GW&K manages more than $7 billion in three investment strategies: intermediate-duration municipal bonds, multi-cap and small-cap equities, and core taxable-fixed-income investments.

Under the terms of the transaction, AMG is purchasing The Bank of New York Mellon’s ownership interest in the asset management business of GW&K.

A group of GW&K employees will hold an equity interest in the company.

AMG has also agreed to buy a large stake in Harding Loevner. A Somerville, N.J.-based investment manager, it has approximately $6 billion in assets under management across six funds that encompass global, emerging-markets and global ex U.S. equity strategies.

Once the transaction is completed, AMG will hold approximately a 60% interest in Harding Loevner.

The remaining 40% of the business will be held by a group of senior employees.

AMG had approximately $254 billion in assets as of June 30.