Legg Mason, Inc. announced it has entered into a definitive agreement to combine Permal, Legg Mason’s existing hedge fund platform, with EnTrust Capital. EnTrust is a leading independent hedge fund investor and alternative asset manager headquartered in New York with approximately $12 billion in total assets and complementary investment strategies, investor base and business mix to Permal.
The business combination will create a new global alternatives firm with over $26 billion in pro-forma AUM1 and total assets of $29 billion2. The firm will have a diverse offering of proprietary investment products with a significant number of institutional and high net worth investors. As a result of the combination, Legg Mason will own 65% of the new entity, branded EnTrustPermal, with 35% being owned by Gregg S. Hymowitz, EnTrust’s Co-founder and Managing Partner.
EnTrustPermal will be led by Mr. Hymowitz, who will become the Chairman and Chief Executive Officer of EnTrustPermal. Key investment and business professionals from both firms will continue to serve the investors of the new organization. EnTrustPermal will have the global infrastructure, resources, investment professionals and underlying investment managers to source, research and structure investment opportunities worldwide on behalf of its international client base.
The combination creates a platform with the necessary scale and leadership team to significantly expand and evolve its multi-alternative capabilities and offerings.
Joseph A. Sullivan, Chairman and CEO of Legg Mason, said, “The combined EnTrustPermal brings together two leading names in the alternative space, creating a significant potential growth engine for Legg Mason. The team at EnTrust has a proven track record for driving significant organic growth through product innovation, with over 20% growth annually since the financial crisis. We see meaningful opportunities to combine this innovation with Permal’s blue chip client base, product offering and global footprint.”
Gregg S. Hymowitz, Managing Partner of EnTrust, said, “The combination of EnTrust and Permal creates a powerful organization in the hedge fund universe. EnTrustPermal’s scale, resources and global investment talent will be able to deliver market differentiated proprietary investments to our over 700 combined institutional accounts and significant number of high-net worth investors. The complementary nature of our investment strategies, geographies and global investor/partner base dramatically springboards us over our competition. The EnTrust and Permal teams are eager to start delivering for our loyal investor base.”