Does Daley's hiring signal an IPO for Artisan Partners?

Artisan Partners LP's hiring of C.J. Daley as chief financial officer may mean that the company is getting serious about IPO plans, observers said. Mr. Daley is leaving his CFO job at Legg Mason Inc. and starts at Artisan on July 26, according to a statement issued by that firm. Mr. Daley has been with Legg Mason since 1988 and has served as CFO since 2001. He is replacing Larry Totsky, who is retiring. The fact that Artisan has attracted a CFO from a much larger asset management company that is publicly traded could put the firm in a position for an initial public offering, observers said. Rumors have circulated for years that the firm, which has $46 billion in assets under management, would be a good candidate for an IPO. The firm is largely owned by its employees, but private-equity firm Hellman & Friedman LLC bought an equity stake in the company four years ago. “Daley is useful only for an IPO,” said an industry observer familiar with Artisan, who asked not to be identified. “Artisan does not need help bean-counting.” Michael Roos, a spokesman for Artisan, said that he wouldn't comment on industry rumors. Meanwhile, Legg Mason is looking for an executive search firm to begin the hunt for a new CFO. “We hope to name a permanent replacement as expeditiously as possible,” said Mary Athridge, a Legg Mason spokeswoman. She declined to comment on which firm Legg Mason would retain. Terrence Murphy, chief operating officer of ClearBridge Advisors, a Legg Mason affiliate, has been named interim CFO. He served as CFO of Citigroup Asset Management prior to Legg Mason's acquisition of the business in 2005.