Dallas-based investment management boutique Westwood Holdings Group has signed a definitive agreement to acquire the asset management business of Salient Partners, a Houston-based investment firm.
The total consideration for the deal is about $60m. It includes an upfront payment of $35m on closing and deferred payments of up to $25m over several years, subject to revenue retention and growth targets.
Salient is a real asset and alternative investment firm with $4.5bn in assets. The firm provides a spectrum of strategies focused on energy and infrastructure, real estate and tactical alternative investments.
The deal is expected to increase Westwood’s total assets under management (AUM) by 32% to $18.4bn.
It also brings energy infrastructure, tactical equity, real estate, and private investments capabilities to the firm, further strengthening its multi-asset, real assets and alternatives platform.
Westwood said that the deal would offer the firm “pro forma specialisation and scale” across the combined company’s multi-asset, real assets and alternative strategies.
Westwood president and CEO Brian Casey said: “This transaction provides a genuine cultural fit, aligns with our strategic objectives and strengthens our business moving forward. The many opportunities for product extensions across the combined range of investment capabilities, including multi-asset, real assets and alternative strategies, have energised our teams.”
Westwood and Salient are said to have complementary investment and distribution capabilities.
This is expected to enhance the combined entity’s ability to offer attractive investment outcomes for a range of institutional, intermediary and wealth management clients.
Salient president and Energy Infrastructure portfolio manager Gregory Reid said: “Westwood’s strong institutional relationships and robust distribution infrastructure will enable us to capitalise on the demand for energy infrastructure and real estate investments.
“Salient’s inherent strengths as an alternative and real-asset investment manager will be amplified and enhanced through our combination with Westwood’s existing Multi-Asset and US Value Equity platform.”