The company identified the buyers as Atlantic Value Partners III Limited, a new company made up of certain members of DIAL’s management, and Hellman & Friedman LLC, a private equity firm. Delaware Investments is the asset management arm of Lincoln Financial Group.
The buyer is paying Delaware $172 million in cash and will provide relief of $27 million worth of obligations. The announcement said that the new company will be recommended to continue a subadvisory relationship with Delaware and Lincoln. The subadvisory arrangements with Delaware and Lincoln mutual funds are subject to the approval of their respective boards and shareholders.
At closing, it is expected that approximately $19 billion in institutional assets managed in a variety of international styles will move with DIAL, which will change its name upon closing of the transaction and will continue to be based in London, the announcement said.
David Tilles, DIAL’s managing director and chief investment officer, will lead the new firm, with approximately 90 London-based employees. A group of 14 Philadelphia-based Delaware employees have been providing services to DIAL. The buyer has agreed to offer all of them positions based in the Philadelphia area.
“This structure will provide our firm with a continued solid, stable foundation from which we can service our clients’ needs in a consistent, high-quality manner as we grow our business,” said Tiles, in a statement. “This structure will provide our firm with a continued solid, stable foundation from which we can service our clients’ needs in a consistent, high-quality manner as we grow our business. We have structured this transaction to minimize disruption to clients, give control of the business to the management team and provide a firm foundation from which to motivate and retain existing and future generations of professionals within the firm.”
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