Affiliated Managers Group is buying a majority interest in San Francisco-based Parnassus Investments, a $47 billion fund group that has focused on responsible investing for the past 35 years.
With the addition of Parnassus, AMG's assets dedicated to environmental, social and governance criteria will total $80 billion, with about $600 billion of total assets incorporating ESG factors into the investment process.
Parnassus partners will continue to own a substantial portion of the equity of the firm and direct day-to-day operations, according to a press release. Its investment process will not change, the firms said.
"We believe it [the deal] provides long-term certainty for our clients and enhances the competitive positioning of our business,” Benjamin E. Allen, Parnassus CEO, said in the release. "With this new partnership, we are well-positioned to continue to build an enduring, multi-generational, partner-owned investment firm that serves the sustainable investing needs of our clients.”
The closing of the transaction will represent the end of the transition from Parnassus founder Jerome Dodson, who retired from portfolio management and all other roles in 2020. Dodson founded the firm in 1984.
AMG said it expects the Parnassus investment will contribute $70 million to adjusted earnings before interest, taxes, depreciation and amortization and $1.30 to economic earnings per share in 2022. Allen and chief investment officer Todd Ahlsten will enter into long-term employment deals with AMG, according to the release.
Nine-month electronic trading freeze and share lending program at the center of dismissed claim.
Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.
With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.
Professional athletes are often targets of scam artists and are particularly vulnerable to fraud.
The brokerage giant tells Wall Street it will use artificial intelligence to reach clients it has never been able to serve — and turn the technology's perceived threat into a competitive edge.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
