BlackRock to acquire Quellos
New York-based asset management firm BlackRock will buy Quellos Group's fund of funds business for up to $1.7 billion.
BlackRock Inc., the New York-based asset management firm, today said it will buy Quellos Group LLC’s fund of funds business for up to $1.7 billion.
At closing, Quellos will receive $562 million in cash, plus $188 million in BlackRock common stock.
The Seattle-based investment management firm may also get up to $970 million in cash and stock over three and a half years.
A portion of after-tax cash proceeds will be reinvested into the fund of funds’ products.
The new entity will manage more than $25.4 billion.
Following the transaction, BlackRock will blend its hedge and private equities fund of funds businesses.
The companies also announced the retirement of Jeffrey Greenstein, Quellos’s CEO, after the merger closes.
He will act as an adviser to BlackRock through its transition.
Bryan White, Quellos’s chief investment officer, will be the global head of the combined fund of funds platform.
Howard Berkowitz will continue to lead BlackRock’s fund of hedge funds’ investment strategy and will be chairman of the investment strategy forum for the combined absolute return business.
The firms expect the deal to close on or about Oct. 1, pending regulatory approval.
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