AMG Makes Push into PE Sector

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Byline: Matt Ackermann

In the largest deal in its 17-year history, Affiliated Managers Group Inc. is buying Pantheon Ventures from Russell Investments, a unit of Northwestern Mutual Life Insurance Co.

AMG, a global asset manager in Boston that owns stakes in a series of boutique investment firms internationally, will pay $775 million in cash with the potential for additional payments over the next five years, contingent on Pantheon's growth. AMG said that when the deal closes in the second quarter, Pantheon's management would own a "meaningful stake" in the company and continue to run the firm. The deal was announced Wednesday.

Pantheon, which has offices in London, San Francisco, New York and Hong Kong, is a global private-equity funds-of-funds manager that has offered investment products to a range of clients for more than 25 years. It manages regional fundsoffunds in Europe, the U.S. and Asia as well as global secondary fundsoffunds, global infrastructure fundsoffunds and customized separate account programs.

Pantheon employs 63 investment professionals out of its 141 employees, and manages approximately $22 billion for more than 300 global clients, including pension funds, endowments, government bodies and insurance companies.

Russell will continue to offer and distribute Pantheon's products. …