AMG to buy Pantheon from Russell Investments for $775M

Affiliated Managers Group will buy the global private equity fund-of-funds business of London-based Pantheon Ventures from Russell Investments for at least $775 million, AMG announced today.

Following the transaction, Pantheon’s management team will own “a meaningful stake” in the business, according to the AMG news release.

The purchase price for the acquisition, expected to close during the second quarter, will be the highest Boston-based AMG has paid since the company was founded 17 years ago.

For Pantheon, which manages $22 billion for more than 260 institutional clients, that ownership structure would be the latest permutation in the business’s 28-year history. According to the company’s website, Pantheon — originally formed in 1982 as the private equity arm of London-based GT Management — gained its independence through a management buyout in 1988, but later sold the business to Russell Investments in 2004.

An AMG spokeswoman declined to provide further details, ahead of a news conference on the transaction scheduled for 11 a.m. EST.

Shares of Affiliated Managers surged nearly 9 percent after the company’s announcement of its fourth purchase of a boutique investment management firm since November. The Boston-based asset manager has expanded its equity stakes in investment management firms with recent deals to acquire Artemis Investment Management, Aston Asset Management and Value Partners Group.

This story first appeared in Pensions & Investments, a sister publication to InvestmentNews. It also includes reporting from the Associated Press