Earlier this month, City National Corporation (NYSE: CYN) announced that it had agreed to acquire a majority interest in investment management firm Lee Munder Capital Group (LMCG) in an effort to strengthen its current asset management offering.
As a result of the acquisition, LMCG will merge with Independence Investments, a majority-owned asset management subsidiary of City National. The combined group will retain the Lee Munder Capital Group name and will also serve as City National’s primary institutional asset management affiliate with $4 Billion assets under management. Convergent Capital Management, acquired by City National in 2003, will also operate as an affiliate of the new LMCG. The deal is expected to be closed in the third quarter of 2009.
Founder of LMCG, Lee Munder will retain a minority interest in the firm, while current LMCG President Kenneth Swan will serve as CEO of the combined firm. Mr. Munder is optimistic about the potential for growth from integration, stating that the merger “allows us to broaden our distribution, gives us additional growth capital and provides a knowledgeable partner dedicated to the investment management business.” Prior to founding LMCG, Mr. Munder was the founder and chairman of mutual fund manager Munder Capital Management, which he later sold to Comerica Inc.
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