AMG Takes Equity Stake in Third Ave

May 22, 2002 ( - A Boston asset-management firm will acquire a majority stock interest in Third Avenue Management, a New York investment manager whose affiliates advise the Third Avenue mutual fund family.

According to a press release announcing the deal, Affiliated Managers Group Inc. (AMG) will hold a 60% interest in a limited liability company that contains the business of Third Avenue Management and MJ Whitman Advisers, Inc.

MJ Whitman Advisers is an investment adviser to separately managed account clients.

With $5.6 billion in assets under management, Third Avenue affiliates also serve as sub-adviser to outside mutual funds and annuities.

The remaining 40% of the business will be held by a group of senior employees, the announcement said.

Third Avenue Management applies a value approach to investing in equities, real estate and corporate debt securities, using a bottom-up analysis to identify securities that are considered “safe and cheap,” with a focus on creating value over the long term, according to a media release from the group.

The terms of the transaction were not disclosed.