Piper plans to acquire Fiduciary Asset Management

FWR Staff

16 April 2007

Its brokerage gone, Piper opens up a new avenue to the individual investor. Piper Jaffray has agreed to buy St. Louis, Mo.-based core manager Fiduciary Asset Management . Piper, a Minneapolis-based institutional securities firm and middle-market investment bank, says the FAMCO provides the right opportunity to get into the investment-management business.

Employee-owned FAMCO says the agreement with Piper provides resources that will allow it to grow its business while continuing "to focus on serving clients."

Additional product opportunities

Piper will pay around $66 million in cash for FAMCO when the closes this summer and a "future cash consideration based on financial performance" at a later date. FAMCO's CEO Charles Walbrandt will continue to lead the firm's management team, which -- says Piper -- will stay put after the deal is done. Walbrandt will report to Andrew Duff, Piper's chairman and CEO.

"FAMCO has a talented, cohesive team of professionals who have produced competitive and consistent results for their clients since its inception," says Duff. "Its dedication to building long-lasting client relationships through placing its clients' interest first make it a strong cultural fit with Piper Jaffray."

Founded in 1994, FAMCO manages about $9 billion in equities, fixed income and alternatives through separately managed accounts and closed end funds -- mainly for individual and high-net-worth investors.

"We will continue to provide hands-on service and customized solutions that our clients expect from us," says Walbrandt. "We look forward to creating additional product opportunities to expand our client relationships."

New York-based investment bank Putnam Lovell NBF Securities advised Piper on the deal.

Piper has 25 offices in the U.S. and international locations in London and Shanghai. Last year it sold its retail brokerage business to Zurich-based UBS. -FWR