Entrust Capital and Permal Group announced plans of a merger to create EntrustPermal whose assets are valued at $29billion, and $26billion in pro-forma AUM. This merger comes as good news as it joins the biggest alternative firms for asset management. The announcement was made on January 22nd, 2016 as Permal got into agreement talks with Entrust Capital on the said issue.
Entrust is one of the leading hedge fund and asset management firms based in New York. It has $12billion worth of assets which it will mix with Permal. The EntrustPermal group has a diverse offering of investment products with high-end investors willing to take their risk with the new group. Legg Mason, the mother company of Entrust Capital, will now own 65% of the new company, Entrust Permal while the rest of the share is owned by Gregg Hymowitz. Gregg is the Managing Director and Co-founder of Entrust Capital. He will be the Chief Executive Officer and Chairman of EntrustPermal.
The key investment and business professionals of the company will continue to provide services for the new entity. As the new company is formed, it creates bigger global opportunities for investment, infrastructure, and investments for the investors to utilize. Some of the key investment capabilities that Entrust Capital holds include:
- A bigger team of 55 key experts sourced from both companies to create a stronger team of investment professionals.
- More investment opportunities for EntrustPermal that include 150 new investment offerings which come from 18 different investment strategies.
- A larger investment platform which has customized investment solutions, opportunistic co-investments, and tail-risk hedging strategies.
- More alternative and innovative products and business lines. These include, private debt offerings, and direct hedge funds.
- The ability to increase the existing Management Account Platform.
The CEO of Legg Mason, Joseph A. Sullivan, expressed optimism when he spoke on the combination as he sees meaningful opportunities. The Entrust team has a proven track record for growth through product innovation. In his speech, Mr. Sullivan said that the company expected to create significant potential growth engine by bringing the two leading names together.
The CEO of Permal Group, Omar Kodmani, also showed optimism that the two companies operating as one would achieve more success. He commented on the industry stating that it required the best alternative solutions which needed scale and talent. Entrust Permal has no shortage of both as it paired up the best in the industry.