Magazine article American Banker

NationsBank Purchases $20M Minority Share in Investment Manager

Magazine article American Banker

NationsBank Purchases $20M Minority Share in Investment Manager

Article excerpt

NationsBank Corp. has taken a minority stake in an investment management firm that could eventually supply the banking company with retail investment products.

The Charlotte, N.C.-based banking company bought close to a $20 million stake in Affiliated Managers Group, a Boston-based holding company with controlling interest in five investment management firms. AMG's affiliated firms have approximately $4.8 billion in assets under management in various investment portfolios.

Sources at NationsBank and AMG would not disclose how large an equity stake the bank has taken, but an AMG official termed it a "substantial minority interest."

While officials at NationsBank sees AMG as principally a good investment at the present time, they are also considering making some of these portfolios available to retail bank customers.

"There's no question that there's a chance to link up strategically," said Michael F. Elliot, the director of NationsBank Leveraged Capital, the bank's private equity unit that made the acquisition.

But Mr. Elliot said no plans had yet been made to integrate some of the AMG-affiliated portfolios within the NationsBank retail structure. The stake in AMG signals the first money management purchase by NationsBank Leveraged Capital. But AMG's president and chief executive, William J. Nutt, is no stranger to banks.

He is a former president of the Boston Co., an investment management firm bought by Mellon Bank Corp. in 1993. (He later bought two of its business units. One of them, Boston-based Funds Distributors Inc. …

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