Macquarie buys into boutique adviser
Allegiance Investment Management has a wealth management business
Macquarie Bank's Funds Management Group has agreed to purchase a majority stake in boutique fixed-income adviser Allegiance Investment Management as the Australian bank expands its presence in the US.
While the terms of the deal were not disclosed, the acquisition is expected to be complete by the second quarter of this year.
Allegiance has about $4.5bn in assets under management for its institutional and high net worth investors.
In a statement, Ben Bruck, head of Macquarie's fund management group, said that the investment in the advisory company will give the bank a way to build "a broader fixed-income capability for our clients in one of the world's largest fixed-income markets."
The addition of Allegiance's business will complement the bank's incumbent fixed-income operations in Sydney and London.
Allegiance chief executive Mark Torline said his clients will gain access to Macquarie's "investment platform, risk management frameworks and quantitative research capabilities," which will fill out the fixed-income manager's capabilities.
As part of the deal, Allegiance will be re-branded Macquarie Allegiance Capital, and no Allegiance staff are expected to lose their jobs, officials said.
Louise Walker, currently division director of Macquarie's funds management group, will move from Australia to Allegiance's offices in Huntington Beach, California, to become head of the new group's product management and marketing team.
Macquarie has recently been hiring staff to build up its equity capital markets business in the US. Its investment banking chief executive Murray Bleach called the expansion of the group "a strategic priority."
In addition, Macquarie owns toll roads in several US states and is now considering lease agreements with Chicago's Midway airport and the Pennsylvania Turnpike.
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