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Natixis Global Asset Management Acquires McDonnell Investment Management, LLC
Expands the company’s offering for investors seeking exposure to core fixed income and municipal bond products; plan s to launch new municipal bond produ ct in early 2013
Natixis Global Asset Manageme nt (NGAM) announced today that it has reached an agreement to acquire McDonnell Investment M anagement, LLC (McDonnell). McDonnell is an Oak Brook, Illinois-based investment adviser with approximately $13.5 billion in assets under management (September 30, 2012) for institutions and individuals. As a new NGAM affiliate, McDo nnell expands the product range distributed through NGA M’s global distribution network. NGAM expects to launch a new municipal bond product in early 2 013.
“Bringing McDonnell’s fixed inco me and municipal bond expertise into the NGAM family is a positive step toward fulfilling a critical need for clients who are focused on durable portfolio construction,” said Pierre Servant, chief executive officer, Natixis Global Asset Management. “McDonnell has consistently demonstrated the entrepreneurial spirit, innovation and solid performance that are all hallmarks of our family of affiliates. The firm has attained success in increasing assets under management in a controlled fashion across all business channels by foc using on the needs of its clients.”
McDonnell is a registered investment adviser providing investment management services to institutions, private clients and mutual fund companies. The firm is kno wn for its expertise and specialization in fixed income investment management, offering customized portfolio solutions employing investment grade taxable and tax-exempt strategies to a geographically diversified client base through investment management consultants and participation on sep arately managed account platforms. Client portfolio man dates encompass a breadth of fixed income strategies including municipal bond, core bond, lim ited duration, multi-sector and liability targeted benchmarks. In addition to separate account portfolios, the firm sub-advises three municipal bond funds and offers one private investment fund with an international bond mandate.
"We are very pleased to be affiliated with a global financial organization of this size and stature," said Edward A. Treichel, President an d CEO at McDonnell. "With this partnership, McDonnell gains greater access to the capital required to continue to serve our clients, build our business and to pursue new product opportunities. We will also have access to a broader distribution base and enhanced growth potential as a result of this affiliation."
In keeping with the NGAM multi-affiliate business model, McDonnell will continue to operate autonomously with no change in management or professional staff. The existing team of investment professionals will continue to pursue the same investment philosophy and employ the same investment process on behalf of clients, and the firm will continue to market these investment services through existing distribution channels. McDonnell will also retain its brand name and its suburban Chicago headquarters. Transaction terms were not disclosed.
Natixis Global Asset Management, S.A. is one of the 15 largest asset managers in the world based on assets under management.1 Its affiliated asset management companies provide investment products that seek to enhance and protect the wealth and retirement assets of both institutional and individual investor clients. Its proprietary distribution network helps package and deliver its affiliates’ products around the world. Natixis Global Asset Management, S.A. brings together the expertise of multiple specialized investment managers based in Europe, the United States and Asia to offer a wide spectrum of equity, fixed-income and alternative investment strategies.
Headquartered in Paris and Boston, Natixis Global Asset Management, S.A.’s assets under management totaled $711 billion (€560 billion) as of June 30, 2012.2 Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.’s affiliated investment management firms and distribution and service groups include: Absolute Asia Asset Management; AEW Capital Management; AEW Europe; AlphaSimplex Group; Aurora Investment Management; Capital Growth Management; Caspian Private Equity; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Global Investors; Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; Natixis Asset Management; Natixis Multimanager; Ossiam; Reich & Tang Asset Management; Snyder Capital Management; and Vaughan Nelson Investment Management.
McDonnell was founded as a 100% employee owned company and SEC registered investment adviser on November 1, 2001 by former employees of Van Kampen Management Inc. (“VKMI”). Dennis McDonnell, Chairman, and Edward Treichel had originally begun assembling the fixed income talent in 1987 while at VKMI, growing the team for over a decade until they acquired the business from Van Kampen Investments Inc. McDonnell manages several investment disciplines for portfolios of taxable securities (U.S. government & agency bonds, structured securities and corporate bonds) and municipal bonds. McDonnell is known for its experienced portfolio management professionals, highly regarded credit research resources and responsive client service capabilities. More information is available at www.mcdonnellinvestments.com.
1 Cerulli Quantitative Update: Global Markets 2012 ranked Natixis Global Asset Management, S.A. as the 13th largest asset manager in the world based on assets under management as of December 31, 2011.
2 Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the SEC’s definition of ‘regulatory AUM’ in Form ADV, Part 1.
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About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.2 billion, a Basel 3 CET1 Ratio(1) of 11.3% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in
Figures as at 31 December 2019.
