BrightSphere Sells Barrow Hanley to Perpetual Limited
Posted on 07/28/2020
BrightSphere Investment Group Inc. (formerly Old Mutual Asset Management US) disclosed that it agreed to sell its 75.1% ownership interest in Dallas-based Barrow Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) to Perpetual Limited, an Australian publicly listed financial services company, for US$ 319 million. In addition, Perpetual will redeem BrightSphere’s seed capital investments in Barrow Hanley strategies at closing, which had a market value of approximately US$ 44 million as of June 30, 2020. BrightSphere Investment Group is expecting a total expected after-tax proceeds of about US$ 320 million including the seed capital.
Morgan Stanley acted as exclusive financial advisor to BrightSphere in connection with the sale of Barrow Hanley. Ropes & Gray LLP served as the legal advisor to BrightSphere.
In addition, on another separate deal, BrightSphere Investment Group agreed to sell its equity interests in Boston-based Copper Rock Capital Partners LLC to Spouting Rock Asset Management LLC and Copper Rock management. BrightSphere anticipates total after-tax proceeds from this transaction of about US$ 15 million, including seed capital but excluding upside sharing arrangements. Founded in 2005, Copper Rock specializes in managing small- and mid-capitalization growth equity portfolios.