Legg Mason is to help create a global alternatives firm as part of a triple acquisition which has also seen it acquire real estate and ETF businesses.
The asset manager has entered into a definitive agreement to combine its existing hedge fund platform Permal with alternative asset manager EnTrust Capital, based in New York.
The merger will create a global alternatives firm with some $26bn (£18.2bn) in pro-forma assets under management. Legg Mason will own 65 per cent of the new entity, EnTrustPermal.
Legg Mason chief executive Joseph Sullivan said: “The combined EnTrustPermal brings together two leading names in the alternative space, creating a significant potential growth engine for Legg Mason.
“The team at EnTrust has a proven track record for driving significant organic growth through product innovation, with over 20 per cent growth annually since the financial crisis.”
In separate moves, Legg Mason has agreed to acquire a majority equity interest in New York-based real estate investment firm Clarion Partners, as well as acquiring a minority position in Precidian Investments, which focuses on products related to the ETF market.