PERTH: Perpetual Limited has entered into an agreement with BrightSphere Investment Group Inc. (BSIG) to acquire BSIG’s 75% interest in Barrow Hanley for US$319 million, a news release said.

Based in Dallas, Barrow Hanley is a diversified investment manager with funds under management (FUM) of approximately US$44.1 billion across 21 key strategies. Barrow Hanley has a team of 95 staff, including 54 investment professionals who invest with a value orientation across US equities, global equities, global emerging markets equities and fixed income strategies with offices in Dallas, and a presence in London and Hong Kong.

Acquisition is expected to more than triple Perpetual’s FUM from A$28.4 billion to A$92.3 billion and add 21 key new strategies across asset classes, strategies and geographies. On a pro forma basis, post the acquisitions of Barrow Hanley and Trillium, Perpetual’s FUM will be comprised of 14% Australian equities, 48% US equities (inclusive of Trillium’s 6%), 11% global equities and 27% cash & fixed income.

Perpetual completed the acquisition of Trillium on 30 June 2020. Perpetual believes that it will be able to leverage its existing distribution capabilities to drive growth in Barrow Hanley’s highly rated US value equities, global value equities, global emerging markets equities and fixed income strategies, and will accelerate its investment in distribution in the US and Europe to support the global growth of both Barrow Hanley and the recently acquired Trillium.

Barrow Hanley will retain its brand and continue to operate independently with no change to its investment process, key personnel or existing management expected. Investment and management team members will retain their 25% ownership, providing both strong alignment and continuity for Barrow Hanley’s clients and Perpetual.Perpetual

Chief Executive Officer and Managing Director, Rob Adams said, “This is a compelling acquisition. It provides Perpetual with world-class investment teams, diversifies our client base by sector and geography, and presents us with significant growth opportunities in the Australian market and a formidable platform to scale our business internationally.

“Barrow Hanley has a 40-year track record of value investing with a highly regarded brand, an experienced and invested management team and a broad, blue-chip, institutional client base; many of whom have been with the company for more than 20 years.

“Having been an investor in Barrow Hanley’s global equities strategy since 2016 via our Perpetual Private business, we have been impressed with the rigour of their investment process and quality of their investment professionals. We have developed a strong relationship with the Barrow Hanley team and developed an in-depth understanding of their business and see an alignment in our goals. We look forward to expanding this relationship and applying our strong distribution experience and capabilities to help grow their business,” Mr Adams said.

CEO and Executive Director of Barrow Hanley, Cory Martin said, “We are confident that we have found the perfect partner and complementary culture to continue our shared mission of delivering competitive investment results with a resolute commitment to clients. This strategic partnership offers the opportunity to further develop our current growth initiatives and to reinvest in our business while maintaining our focus on successfully managing client portfolios. We appreciate the team at BrightSphere for their many years of supporting both Barrow Hanley and our client partners.

“Perpetual’s Australian footprint and offices in  Singapore, Boston, San Francisco and Portland coupled with Barrow Hanley’s existing offices in Dallas, and presence in London and Hong Kong, is expected to greatly enhance our ability to serve our clients globally while providing direct local access to these key markets. The strategic and cultural alignment is clear and we are excited about our future together,” Mr Martin said.