Natixis Global Asset Management Acquires McDonnell Investment Management

McDonnell is an Oak Brook, Illinois-based investment advisor with approximately $13.5bn in assets under management (September 30, 2012) for institutions and individuals. As a new NGAM affiliate, McDonnell expands the product range distributed through NGAM’s global distribution network. NGAM expects to launch a new municipal bond product in early 2013.

'Bringing McDonnell’s fixed income and municipal bond expertise into the NGAM family is a positive step toward fulfilling a critical need for clients who are focused on durable portfolio construction', said Pierre Servant, chief executive officer, Natixis Global Asset Management. 'McDonnell has consistently demonstrated the entrepreneurial spirit, innovation and solid performance that are all hallmarks of our family of affiliates. The firm has attained success in increasing assets under management in a controlled fashion across all business channels by focusing on the needs of its clients'.

McDonnell is a registered investment advisor providing investment management services to institutions, private clients and mutual fund companies. The firm is known for its expertise and specialization in fixed income investment management, offering customized portfolio solutions employing investment grade taxable and tax-exempt strategies to a geographically diversified client base through investment management consultants and participation on separately managed account platforms. Client portfolio mandates encompass a breadth of fixed income strategies including municipal bond, core bond, limited duration, multi-sector and liability targeted benchmarks. In addition to separate account portfolios, the firm sub-advises three municipal bond funds and offers one private investment fund with an international bond mandate.

'We are very pleased to be affiliated with a global financial organization of this size and stature', said Edward A. Treichel, President and CEO at McDonnell. 'With this partnership, McDonnell gains greater access to the capital required to continue to serve our clients, build our business and to pursue new product opportunities. We will also have access to a broader distribution base and enhanced growth potential as a result of this affiliation'.

In keeping with the NGAM multi-affiliate business model, McDonnell will continue to operate autonomously with no change in management or professional staff. The existing team of investment professionals will continue to pursue the same investment philosophy and employ the same investment process on behalf of clients, and the firm will continue to market these investment services through existing distribution channels. McDonnell will also retain its brand name and its suburban Chicago headquarters. Transaction terms were not disclosed.