Paris-headquartered asset management group Natixis Investment Managers has reached an agreement to purchase a minority stake in WCM Investment Management (WCM) and become their exclusive third-party distributor, subject to limited exclusions.
Under the terms of the deal, Natixis, taking a 24.9% stake in WCM, will distribute the US equity growth manager’s investment strategies globally and support its development.
Laguna Beach-based WCM, which had $29bn of AUM as of end May 2018, will retain full independence and autonomy. Paul Black and Kurt Winrich will remain as co-CEOs, and there will be no changes to management or investment teams. Natixis expects an impact on its CET1 ratio of approximately -15 basis points (bps).
The transaction is expected to close in the second half of 2018, subject to customary closing conditions and regulatory approvals.
“We are pleased to become the global third-party distributor for WCM, whose strong track record and proven investment process make them an excellent partner and strong addition to our global offering.
“Our investment in WCM exemplifies our commitment to adding high-conviction, highly active investment managers to our multi-affiliate platform in order to provide our clients with a wide range of unique investment opportunities,” said Jean Raby, CEO of Natixis Investment Managers.
“We’re really excited to enter into this partnership with Natixis. After a lot of thought and collective input, we concluded the smartest way to enhance our stability, and to guard our investment temperament, was to partner with a world-class global distribution platform.
“For some time now we’ve known that diversifying the product mix within the firm – by raising the profile of our global strategy, our emerging markets strategy, and various other investment strategies – is the key to making this happen,” added Paul Black, Co-CEO of WCM Investment Management.