Principal Group Acquires Majority Stake In London’s Origin

Jul 8 2011 | 8:28am ET

Iowa-based asset manager Principal Global Investors will acquire 74% of London-based Origin Asset Management for approximately US$66 million.

“We are delighted to be entering into this partnership,” said Jim McCaughan, chief executive officer of Principal Global Investors. “Origin’s proven capabilities in managing global equities will be very attractive to our clients and advisors around the world.”

Origin partners will retain a 26% stake in the business and will reinvest a “substantial” share of their consideration into funds managed by the firm, according to the press release announcing the deal. Founded in 2005, Origin currently managed about US$3 billion.

All passive investors in Origin, including IPGL, will sell their entire holdings to The Principal.

“We are excited to be teaming up with Principal Global Investors,” said Nigel Dutson, managing partner of Origin. “This strategic partnership will allow us to continue the development of our business around the world while maintaining our operating independence, distinctive investment process and organizational culture.”

The transaction is expected to close in October 2011, pending regulatory approval. Fenchurch Advisory Partners advised The Principal on the transaction.

The acquisition is The Principal’s third for 2011. In April, it acquired 100% of HSBC AFORE from Grupo Financiero HSBC and a majority stake in Finisterre Capital. The deals are part of the group’s 2011 capital deployment strategy.

The Principal Financial Group has $327.4 billion AUM and offices in Asia, Australia, Europe, Latin America and the United States.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.