EnTrust and Permal are headed for a joint venture to create one of the largest global alternative asset management firms in the world. The new company which will be referred to as EnTrustPermal and will have total assets worth $29 billion and Pro-forma AUM of over $26 billion. Entrust is current the leading alternative asset manager and hedge fund investor that has its headquarters located in New York. The company has total assets, investor base, business mix and complementary investment strategies amounting to $12 billion to Permal. EnTrust offers a diverse management of investment products which involves high net worth investors and a significant number of institutions.
Permal Group is a hedge funds manager which deals with private equity funds products for international investors. Started in 1973, it is now one of the oldest hedge funds firm currently managing approximately $22 billion in Assets. The primary clients of the company include private banks pension funds, sovereign wealth funds, foundations, endowments, insurance companies, high-net-worth individuals, and family offices.
The combination of EnTrust and Permal will make Legg Mason the owner of 65% of the new entity and 35% being owned by Entrust’s Co-founder and managing partner, Gregg S. Hymowitz. He will also be the chairman and chief executive officer of EntrustPermal. Both firms have agreed to retain business and investment professionals to serve the investors of the newly formed organization. Also, keeping the professionals will create a platform for the necessary leadership and scale team to expand significantly the new company and utilize the multi-alternative offerings and capabilities.
This is not the first deal Legg Mason has scored in 2016, the company is about to acquire an equivalent of 20% stake in Precidian Investment to expand its lineup of exchange-traded funds. Recently, the company bought a majority stake in the real-estate specialists Clarion Partners LLC, which translated to $585 million or 83% stake in the business.
According to Gregg S. Hymowitz, it is the combination of Permal and EnTrust that makes powerful and big organization in the hedge fund industry. EnTrustPermal’s strategy using its resources, scale, and global investment talent will be to deliver differentiated proprietary investments to the now over 700 institutional accounts and high-net-worth investors. It is important to note that the future of the hedge funds industry is offering the investors alternative investment solutions on multiple fronts. EnTrustPermal’s nature regarding investment strategies, global partnership, and different geographies gives it a competitive edge in the industry.