US investment management firm Barrow Hanley to be acquired by Perpetual

BrightSphere Investment Group has agreed to sell its stake of 75.1% in US-based diversified investment management firm Barrow Hanley, Mewhinney & Strauss (Barrow Hanley) to Australian financial services company Perpetual for AUD465 million ($319 million).

The acquisition is said to be in line with the strategy of the Australian financial services group to create world-class investment expertise and capability. It also brings together two complementary investment management companies having a long history of value investing and common principles.

Since 1979, Barrow Hanley has been offering 25 plus value-oriented investment strategies, which include core, core plus, intermediate, short maturity, high yield strategies, investment-grade credit, long duration, and also special purpose portfolios.

The company was founded by United Asset Management, which was acquired in 2000 by UK-based Old Mutual and subsequently became an affiliate of the latter’s subsidiary OMAM, which would be rebranded later as BrightSphere Investment Group. In 2010, the structure of Barrow Hanley was changed, which allows its employees to have a 25% stake in the business.

Currently, Barrow Hanley employs nearly 100 people and manages $44.1 billion in assets for a range of clients, which include corporate, public, mutual funds, multi-employer pension plans, endowments and foundations, and sovereign wealth funds in North America, Australia, Europe, Asia, and Africa.

Rob Adams – Perpetual CEO and Managing Director said: “Having been an investor in Barrow Hanley’s global equities strategy since 2016 via our Perpetual Private business, we have been impressed with the rigor of their investment process and quality of their investment professionals.

“We have developed a strong relationship with the Barrow Hanley team and developed an in-depth understanding of their business and see an alignment in our goals. We look forward to expanding this relationship and applying our strong distribution experience and capabilities to help grow their business.”

Barrow Hanley will be able to keep its brand autonomy and continue to function independently without any changes to its investment teams and philosophy. The existing management of the investment management firm will continue to oversee the business.

Cory Martin – CEO and Executive Director of Barrow Hanley said: “We are confident that we have found the perfect partner and complementary culture to continue our shared mission of delivering competitive investment results with a resolute commitment to clients. This strategic partnership offers the opportunity to further develop our current growth initiatives and to reinvest in our business while maintaining our focus on successfully managing client portfolios.”

The deal is expected to be closed in Q4 2020 based on receipt of regulatory and other customary approvals.