Old Mutual to buy 60% stake in Landmark Partners

Old Mutual’s asset management business, OM Asset Management, will buy a 60% stake in secondary private equity, real estate and real asset investment firm Landmark Partners.

It will pay around $240m in cash at closing, with the potential for an additional payment based on the growth of the business through 2018.

Old Mutual said it plans to fund the payment using its existing revolving credit facility or may seek alternative sources of debt financing depending on market conditions.

The deal, which is likely to close in the third quarter, is expected to be earnings accretive to OMAM in 2017.

OMAM chairman James J. Ritchie said: “Landmark fits comprehensively into our stated acquisition strategy, providing a leading platform in an increasingly important asset class, leveraging the strength of our global distribution group, expanding our range of active strategies for investors, and further diversifying our earnings base by broadening our participation in alternative investment strategies."

Landmark has completed over 500 transactions with committed capital of $15.5bn since its founding in 1989, and has acquired interests in over 1,900 partnerships, managed by over 700 general partners.

At 1310 BST, Old Mutual shares were down 1.9% to 172.90p.