Friday, 21 October 2016
Last updated 15 hours ago
Jul 8 2008 | 8:50am ET
Ameriprise Financial has struck a deal to buy money manager J.W. Seligman & Co. and its $3 billion in hedge fund assets.
Ameriprise—the former American Express Financial Advisers—will pay $440 million for the New York-based firm, which manages a total of $18 billion. Minneapolis-based Ameriprise currently has hedge funds run by its RiverSource Investments and Threadneedle Investments subsidiaries, and says the deal will boost its presence in the alternative investments industry.
“Seligman is an excellent strategic fit for Ameriprise Financial,” CEO Jim Cracchiolo said. “We look forward to realizing substantial benefits from Seligman’s experienced investment management team and broad retail, institutional and alternative asset distribution strengths.”
Seligman’s biggest draw may have been its technology team, which runs as number of retail and alternatives funds.
Ameriprise will pay for Seligman using cash on hand.