Guggenheim Partners, headquartered in New York and Chicago, is planning to combine its asset management businesses, creating a new entity which the firm says will have around $119 billion assets under management.

Guggenheim Investments, the new unit, brings together several of the firm’s investment management businesses and combines these with Rydex|SGI, the acquisition of which by Guggenheim is expected to be completed by the first quarter of 2012. The deal is expected to add $20 billion in AuM held in exchange traded funds and products to Guggenheim, the firm said.

The new business will be led by Todd Boehly, president of the parent firm, along with Scott Minerd as chief investment officer, Don Cacciapaglia as chief administration officer, and Richard Goldman as chief operating officer.

Going forwards, Guggenheim Partners said it particularly plans to extend its reach among financial advisors.

Monetary terms of the deal with Rydex were not disclosed.

Guggenheim Partners, a privately-held firm, provides investment advisory services to institutional investors, ultra high net worth individuals, investment advisors and family offices and has 25 offices worldwide.