Aristotle Capital Management, an investment management organization that specializes in equity and fixed income portfolio management for institutional and advisory clients worldwide, and Pacific Life Insurance, a mutual life insurance company, jointly announced Aristotle’s planned acquisition of Pacific Life’s third-party credit asset management firm, Pacific Asset Management (PAM), whose clients include Pacific Funds. As part of the transaction, Pacific Life will receive a minority interest in Aristotle. Aristotle also announced that subsequent to the close of the transaction, Pacific Asset Management will be known as Aristotle Pacific Capital.
“We are pleased to welcome the PAM team to the Aristotle family,” Richard S. Hollander, chairman of Aristotle, said. “We have a proven history of identifying the right partners, who share our client-focused investment approach. In all our discussions with the PAM team, we have found their culture and principles to be complementary to ours. We look forward to joining forces to continue to meet our clients’ needs.”
The transaction represents $20.7 billion in assets under management and more than 50 professionals, including 23 investment team members, to Aristotle.
“Aristotle’s investment management mindset, entrepreneurial culture and robust infrastructure will strengthen our business as we continue to deliver for our clients,” Dominic Nolan, CFA, CEO of PAM, said. “I am thankful for where we have come from and couldn’t be happier about where we are going.”
The acquisition fits into Aristotle’s strategy to thoughtfully expand product offerings and identify investment talent as well as to broaden Aristotle’s fixed income business. The transaction will bring together two complementary businesses and includes an ongoing strategic partnership between Pacific Life and Aristotle.
“We are excited to partner with Aristotle through this transaction,” Adrian Griggs, executive vice president and chief operating officer of Pacific Life, said. “Due to the complementary nature of our businesses, we believe this enhances growth opportunities for PAM, Aristotle and Pacific Life’s retail distribution group.”
Following the close of the transaction, PAM will operate as Aristotle Pacific led by Dominic Nolan, CFA as CEO. PAM will maintain its investment approach business focus and client service while being better positioned to achieve additional scale and have access to broader distribution with Aristotle.
The transaction is expected to close during the first half of 2023. Terms of the agreement were not disclosed. Closing is subject to customary approvals, conditions and concepts.
RBC Capital Markets is acting as exclusive financial advisor, and Stradley Ronon Stevens & Young is serving as legal advisor to Pacific Life. Ballard Spahr, TJC Law Group and Ropes & Gray are legal counsel to Aristotle for the transaction.