Anchor Capital buys back majority stake from Boston Private
After the deal closes, the $9 billion asset advisory firm's employees will own 70% of the company.
Anchor Capital Advisors, a $9 billion independent asset manager and wealth advisory firm, announced Wednesday that it was regaining majority ownership after purchasing back the equity stake it sold to Boston Private in 2006.
After the transaction closes, Anchor employees will own 70% of the company. Ownership is currently about 17%.
An affiliate of Lincoln Peak Capital, a long-term equity partner for asset management firms, will hold the remaining 30%.
The deal is part of Anchor’s succession plan, allowing the firm to reclaim independence as the next generation of management prepares to take over.
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Anchor founder and CEO Bill Rice Sr. will transition to a new role as executive chairman. Bill Rice Jr. will take over the CEO role while continuing his current duties as chief investment officer.
Mark Bergen, currently Anchor’s chief operating officer, will assume the role of president.
The senior Mr. Rice said one of the company’s core value investing philosophies is investing in companies with active management control and majority equity participation.
The younger Mr. Rice added that this deal better aligns Anchor’s own employees with that investment philosophy. “This transaction ensures that a large number of Anchor employees have a vested interest in the future of the firm,” he said in a statement.
The deal is expected to close in the first quarter of 2018.
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