Reich & Tang, the New York-based investment management firm, has agreed to acquire five money market funds (MMFs) from HighMark Capital Management, a San Francisco-based wholly-owned subsidiary of Union Bank. The deal, which represents more than US$4bn in shareholder assets, has been approved by each company’s board of trustees and is expected to close by July 2013.
Reich & Tang currently supervises nearly US$30 billion across MMFs, Federal Deposit Insurance Corporation (FDIC)-insured programmes, and separately managed account portfolios. The firm is a subsidiary of Natixis Global Asset Management, one of the largest asset managers worldwide with around US$779bn in assets under management.
“We are extremely pleased to have entered into this arrangement with HighMark Capital Management,” said Michael Lydon, chief executive officer (CEO) of Reich & Tang. “The similarity in both firms’ business structures creates an ideal pairing for a seamless acquisition, which will provide HighMark Fund shareholders with immediate cost benefits and integration into a highly stable diversified client base.”
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