Aristotle Capital Management has expanded its credit offering by acquiring Pacific Life Insurance Company’s third-party credit asset management firm, Pacific Asset Management (PAM).
Under the terms of the agreement, Pacific Life will get a minority stake in Aristotle, which specialises in equity and fixed income portfolio management for institutional and advisory clients globally.
Following the completion of the deal, Pacific Asset Management will operate under Aristotle Pacific Capital brand name.
The new entity will be led by PAM’s current CEO Dominic Nolan.
PAM CEO Dominic Nolan said: “Aristotle’s investment management mindset, entrepreneurial culture and robust infrastructure will strengthen our business as we continue to deliver for our clients.
“I am thankful for where we have come from and couldn’t be happier about where we are going.”
The clients of PAM, which managed nearly $20.7bn in assets under management, include Pacific Funds.
Over 50 professionals, including 23 investment team members, will join Aristotle post-acquisition.
Aristotle chairman Richard Hollander said: “We are pleased to welcome the PAM team to the Aristotle family.
“We have a proven history of identifying the right partners, who share our client-focused investment approach. In all our discussions with the PAM team, we have found their culture and principles to be complementary to ours. We look forward to joining forces to continue to meet our clients’ needs.”
The deal, whose financial terms were not disclosed, is expected to close in the first half of 2023.