Putnam Investments Acquisition Expands East Coast Presence

The acquisition has significantly expanded Putnam's presence on the East Coast, with a major office in Boston now under their umbrella.

Putnam Investments has a long history of providing investment management services to individuals, families, and institutions.

The acquisition has brought a new team of experienced investment professionals to Putnam, further enhancing their ability to serve clients.

Putnam's expanded East Coast presence is expected to drive growth and increase their market share in the region.

Putnam Investments was acquired by Great-West Lifeco in 2007, a Canadian financial services company.

The acquisition was valued at approximately $3.9 billion, a significant deal that marked a major milestone for Great-West Lifeco.

Putnam Investments was a leading investment management firm with a long history dating back to 1937.

The company had a diverse range of investment products and services, including mutual funds, institutional accounts, and retirement plans.

Great-West Lifeco's acquisition of Putnam Investments expanded its presence in the US investment management market.

The acquisition created a global investment management business with significant assets under management.

Curious to learn more? Check out: Seed Investment Company

F.L.Putnam Investment Management Company has completed its acquisition of Darwin Trust Company of New Hampshire, LLC, a significant move in the investment management space.

The acquisition was announced by F.L.Putnam, marking a notable development in the industry.

F.L.Putnam Investment Management Company is now the owner of Darwin Trust Company, a notable change in the company's structure.

In 2000, Putnam's asset value began a gradual decline, dropping from $400 billion to $192 billion by 2006. This significant drop in value was a major concern for investors.

The company's struggles continued, with the Securities and Exchange Commission (SEC) and the Massachusetts Secretary of State filing separate civil complaints against Putnam in October 2003. These complaints alleged that the company's portfolio managers had engaged in rapid trading of its mutual funds.

Lasser resigned a few days after the complaints were filed, and Charles "Ed" Haldeman was promoted to chief executive. He initiated broad changes within the company, creating new guiding principles and reducing the staff by 11 percent.

Check this out: Value Investing Stocks

This included eliminating 25 of the highest-paid executive positions and reducing senior management compensation to half of what it was in 2000. Haldeman also adjusted portfolio managers' compensation to encourage more long-term thinking and planning.

Putnam admitted to allowing its portfolio managers and some investors to market time its funds, leading to a settlement with the SEC and the Secretary of the Commonwealth of Massachusetts. The company paid $110 million in fines and restitution as a result.

The scandal led to a significant loss of investor trust, with at least $28 billion withdrawn from Putnam's stock and bond funds over six months. By May, 70 civil actions had been filed against the company for allegedly engaging in improper trading.

F.L.Putnam Investment Management Company has completed its acquisition of Darwin Trust Company of New Hampshire, LLC. This significant deal is worth up to $1.3 billion.

The acquisition was announced by F.L.Putnam Investment Management Company, marking a major milestone in the company's growth.

The deal's value is a substantial one, reaching up to $1.3 billion, making it a notable transaction in the industry.

Franklin Templeton's acquisition of Putnam is a significant deal that adds scale to its assets under management (AUM), capabilities, and client relationships. The company will purchase Putnam primarily with $825 million in equity up-front at closing.

The deal also includes contingent payments of up to $375 million tied to revenue growth from the partnership, providing a potential upside for Franklin Templeton. This transaction is expected to close in the fourth quarter of 2023.

The acquisition adds complementary capabilities to Franklin Templeton's existing specialist investment managers, meeting the varied needs of its clients and increasing its defined contribution AUM. This expansion is a strategic move to enhance the company's presence in the market.

Dick Darian, founder and CEO of Wise Rhino Group, notes that the asset management industry is facing compressed fees and increased investment personalization, making consolidation inevitable. Franklin Templeton's acquisition of Putnam is a step in this direction.

The deal is part of Franklin Templeton's active pace of acquisitions, with the company recently acquiring volScout LLC, a startup that provides separately managed accounts and manages investor portfolios. This acquisition adds to the managed option solutions on offer to advisers serving institutional clients and high-net-worth investors.

Franklin Templeton's acquisition of Legg Mason in 2020 was a significant move, establishing the company as one of the world's largest independent, specialized global investment managers. This acquisition combined $1.5 trillion in AUM across one of the broadest ranges of investment teams in the industry.