Last updated: 08:37 / Wednesday, 6 January 2016
Acquiring 80% of the Firm

Legg Mason in Talks to Buy Clarion Partners

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Legg Mason in Talks to Buy Clarion Partners
  • Legg Mason would buy 80% of the firm from Lightyear Capital, in a deal valuing the company at about US$ 850 million
  • New York-based Clarion's current management, headed by Chairman and Chief Executive Officer Stephen Furnary, will retain 20%
  • Clarion, which is based in New York and invests in office and retail related real estate, has about US$ 38 billion in assets under management, according to its website

Global asset manager Legg Mason Inc is in exclusive talks to buy a majority stake in real estate investment manager Clarion Partners LLC in a deal valuing the company at about US$ 850 million, according to Bloomberg. Clarion, which is based in New York and invests in office and retail related real estate, has about US$ 38 billion in assets under management, according to its website.

Under the terms being discussed, the asset manager would buy 80% of the firm from Lightyear Capital, while New York-based Clarion's current management, headed by Chairman and Chief Executive Officer Stephen Furnary, will retain 20%.  Back in November, Reuters reported in that private equity firm Lightyear Capital was looking to sell its majority stake in Clarion Partners LLC for around US$ 800 million. A deal could be announced as early as this month.

Lightyear helped Clarion's management buy the firm from its previous partner, Dutch financial services company ING Groep NV in 2011. When that deal was struck, the price and ownership structure were not disclosed. Neither Legg Mason, Lightyear or Clarion have made any comments on this matter.

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