Affiliated Managers Group, Inc. entered into a definitive agreement to acquire an unknown majority stake in Parnassus Investments from Jerome Dodson and his family for approximately $530 million.
July 05, 2021
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Affiliated Managers Group, Inc. (NYSE:AMG) entered into an agreement to acquire an unknown majority stake in Parnassus Investments from Jerome Dodson and his family for approximately $530 million on July 2, 2021. After the closing of the transaction, Parnassus partners will continue to own a substantial portion of the equity of the firm and direct its day-to-day operations consistent with Affiliated Managers Group, Inc.’s partnership approach, which is recognized by the marketplace for preserving the operating and investment independence of Affiliated Managers Group, Inc. The transaction will be funded with existing corporate resources. As with all Affiliated Managers Group, Inc. Affiliates, the Parnassus investment process will not change as a result of its partnership with Affiliated Managers Group, Inc. and the Parnassus investment team will remain fully independent. The closing of the transaction will represent the culmination of the transition from Jerome Dodson Founder of Parnassus Investment, who retired from portfolio management and all managerial duties in 2020, to the next generation of leadership. Benjamin E. Allen, Chief Executive Officer of Parnassus, and Todd Ahlsten, Chief Investment Officer of Parnassus, will enter into long-term employment agreements with Affiliated Managers Group, Inc. The transaction is subject to customary closing conditions and regulatory approvals. The transaction, which is expected to close during the second half of 2021. Moelis & Company LLC acted as exclusive financial advisor to Parnassus Investments. A team led by William Regner, including Marc Ponchione, Jonathan Lewis and Peter Furci of Debevoise & Plimpton LLP acted as legal advisor to Parnassus Investments. JPMorgan Chase & Co. (NYSE:JPM) acted as financial advisor to Affiliated Managers Group, Inc. in the transaction.
Affiliated Managers Group, Inc. is a global independent investment management company. The Company is focused on investing in a range of partner-owned investment firms, known as Affiliates. Its Affiliates provide a diverse range of differentiated investment strategies designed to assist institutional and wealth clients worldwide in achieving their investment objectives. Its Affiliates also provide investment management and customized investment counseling and fiduciary services to high-net worth individuals and families and institutional clients. Its Affiliates distribute their investment services and products to institutional and wealth clients through direct sales and relationships with consultants and intermediaries around the world through their own business development capabilities. Its Affiliates manage assets for investors in more than 50 countries. It manages its assets across a range of private markets, liquid alternative and differentiated long-only investment strategies.
Affiliated Managers Group, Inc. entered into a definitive agreement to acquire an unknown majority stake in Parnassus Investments from Jerome Dodson and his family for approximately $530 million.
AFFILIATED MANAGERS GROUP, INC. 
