Key Takeaways
- • Macquarie Asset Management (MAM), the asset management division of Macquarie Group (ASX: MQG), agreed to acquire New York-based Central Park Group (CPG), an independent investment advisory firm serving high-net-worth and smaller institutional investors.
- • Central Park Group manages more than $US3.5 billion in assets under management, according to the announcement, and provides private client access to institutional hedge fund, private equity, real estate and funds-of-funds strategies.
- • Financial terms of the transaction were not disclosed, and the deal is expected to close in early 2022.
- • The acquisition is positioned by Macquarie as a step toward becoming a leader in the US high-net-worth alternatives sector, leveraging its significant presence in the intermediary channel.
- • Central Park Group's co-CEOs and co-CIOs, Gregory Brousseau and Mitchell Tanzman, will remain in leadership roles, with the firm continuing to operate its alternatives offerings within Macquarie's platform.
Summary
Macquarie Asset Management (MAM), the asset management division of Macquarie Group (ASX: MQG), announced on October 21, 2021 that it has agreed to acquire Central Park Group (CPG), a New York-based independent investment advisory firm. According to the Business Wire announcement, Central Park Group delivers private client access to institutional hedge fund, private equity, real estate and funds-of-funds strategies, and the firm reports more than $US3.5 billion in assets under management as of September 1, 2021.
Macquarie framed the deal as a strengthening of its commitment to offering individual investors a diversified platform of institutional-quality alternative investments managed by Macquarie and other leading sponsors. Ben Way, Head of Macquarie Asset Management, said the combination would address individual investor needs by increasing access to alternatives and enhancing the client experience, citing Macquarie's alternatives expertise and its significant presence in the intermediary channel. Graeme Conway, Chief Commercial Officer at Macquarie Asset Management, said individual demand for alternative strategies is playing a central role in a dramatic shift across the asset management industry.
Macquarie said it will continue building a suite of value-added services, educational tools, curricula and alternative investment offerings. Central Park Group, which states that it was founded to serve high-net-worth and smaller institutional investors and that its founders have invested more than $US15 billion over more than 25 years, will be run by co-CEOs and co-CIOs Gregory Brousseau and Mitchell Tanzman. Brousseau said clients would benefit from the added resources and scale of a major global financial institution, while Tanzman described the deal as a way to eliminate structural impediments to private client investment in alternatives on a substantially larger scale.
The transaction is expected to close in early 2022. Financial terms were not disclosed. Macquarie reported more than $US520 billion in assets under management globally as of June 30, 2021.
Macquarie framed the deal as a strengthening of its commitment to offering individual investors a diversified platform of institutional-quality alternative investments managed by Macquarie and other leading sponsors. Ben Way, Head of Macquarie Asset Management, said the combination would address individual investor needs by increasing access to alternatives and enhancing the client experience, citing Macquarie's alternatives expertise and its significant presence in the intermediary channel. Graeme Conway, Chief Commercial Officer at Macquarie Asset Management, said individual demand for alternative strategies is playing a central role in a dramatic shift across the asset management industry.
Macquarie said it will continue building a suite of value-added services, educational tools, curricula and alternative investment offerings. Central Park Group, which states that it was founded to serve high-net-worth and smaller institutional investors and that its founders have invested more than $US15 billion over more than 25 years, will be run by co-CEOs and co-CIOs Gregory Brousseau and Mitchell Tanzman. Brousseau said clients would benefit from the added resources and scale of a major global financial institution, while Tanzman described the deal as a way to eliminate structural impediments to private client investment in alternatives on a substantially larger scale.
The transaction is expected to close in early 2022. Financial terms were not disclosed. Macquarie reported more than $US520 billion in assets under management globally as of June 30, 2021.
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