Experts Offer Advice on Initiating and Structuring M&A Transactions in the Asset Management Industry (Part One of Two)

Mergers, acquisitions, joint ventures, acquisitions of minority interests and lift-outs of teams occur in the asset management industry for many reasons; managers may seek to grow assets under management, plan for succession, add new products or strategies or add new distribution channels.  A panel of experts from K&L Gates recently discussed current trends in the asset management industry and a number of considerations in planning an acquisition or other deal with an asset manager, broker-dealer or adviser, including choice of partner, due diligence, structuring, taxation and various regulatory and compliance considerations.  Moderated by Michael S. Caccese, a practice area leader, the program featured partners Kenneth G. Juster and Michael W. McGrath; and practice area leaders D. Mark McMillan and Robert P. Zinn.  This article, the first in a two-part series, summarizes the key takeaways from that program with respect to asset management industry trends, choosing a partner, due diligence and structuring considerations.  The second article will address taxation, regulatory and business integration concerns.  See also “Buying a Majority Interest in a Hedge Fund Manager: An Acquirer’s Primer on Key Structuring and Negotiating Issues,” Hedge Fund Law Report, Vol. 4, No. 17 (May 20, 2011). 

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