The deal will see Principal take a 55% share of the hedge fund manager, which has offices in London and New York and around $2.1bn in AUM. It is due for completion in Q2 2013.
Liongate manages a range of commingled funds of hedge funds, managed accounts and customised investment portfolios, for both institutional and private investors. The partners will retain a 45% share and will continue in their current roles, investing a significant share of their consideration into existing Lionshare strategies.
Jim McCaughan, chief executive officer of Principal Global Investors, said: “With its strong reputation and focused investment expertise, Liongate is a welcome addition to our multi-boutique investment management structure. The partnership will enhance our capabilities in alternative investments, which is an area where client demand continues to grow. Very few institutional investment firms have this level of expertise in hedge fund investing.
“Being affiliated with a global investment management leader, Liongate will benefit from access to The Principal’s global footprint and strong distribution networks, as well as its product development expertise and best-practice support infrastructure.”