SBC Buys US Fund Manager for $750M
SWISS BANK Corporation is paying $750m for Brinson Partners, a big Chicago fund manager, in a deal that it says will lead to a substantial expansion of the group's international fund management business.
SBC, one of the big three Swiss banks, is buying a firm with $36bn under management and a US market share of 1.5 per cent. Rudi Bogni, head of SBC's London operations, said the acquisition was part of a global strategy to expand in fund management.
The bank plans to expand its London fund management business with Brinson's existing small operation in the UK and is likely to begin hiring new staff early next year.
SBC's strength has been in managing funds from Switzerland and it has been slow to move into wider international fund management. "The Brinson deal is the major building block," Mr Bogni said.
He expected tangible signs of growth at the UK end by early 1995 as the existing international fund management businesses in London, Paris, New York and Tokyo were integrated into a new unit within the group.
The purchase price for Brinson includes a down-payment and performance-related payments over the next seven years, largely in SBC bearer shares. …