Principal Global Takes Majority Stake in Liongate

Mar 4 2013 | 9:25am ET

Principal Global Investors will acquire a 55% stake in London and New York-based alternative investment boutique Liongate Capital Management.

The value of the deal was not made public, but according to a press release, the Liongate partners—who will retain a 45% stake in the firm—will reinvest “a significant share of their consideration” into existing Liongate strategies.

Principal Global, a member of the Principal Financial Group, manages $281.5 billion, primarily for institutional clients. Liongate, founded in 2003 and with $2.1 billion under management, creates and manages portfolios of hedge funds.

“With its strong reputation and focused investment expertise, Liongate is a welcome addition to our multi-boutique investment management structure,” said Jim McCaughan, chief executive officer of Principal Global Investors, in a statement. “The partnership will enhance our capabilities in alternative investments, which is an area where client demand continues to grow. Very few institutional investment firms have this level of expertise in hedge fund investing.” 

Liongate, for its part, will get access to the larger group's distribution networks, infrastructure and product-development expertise.

The transaction is expected to close in Q2 2013, pending regulatory approval. Sandler O'Neill + Partners advised The Principal on the transaction and Fenchurch Advisory Partners advised Liongate

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