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Macquarie Investment Management Closes Acquisition of USD 12bn in Assets of First Investors Funds Managed by Foresters Financial
Tuesday 08 October 2019

8 October 2019 - Australian financial services group Macquarie's (ASX: MQG) Macquarie Investment Management business has closed the acquisition of the assets related to the mutual fund management business of Foresters Investment Management Company, Inc., the investment adviser of the First Investors funds, with approximately USD 12bn in assets under management, the group said.

The transaction includes approximately USD 11bn in First Investors Funds that have been successfully reorganized into the Delaware Funds by Macquarie family of funds and approximately USD 1bn in assets transitioned to the recently launched Delaware Funds by Macquarie Premier Advisor Platform.

The Platform offers asset allocation models using a mix of existing Delaware Funds by Macquarie mutual funds and certain First Investors mutual funds that are newly reorganized.

In addition to the acquisition, Macquarie Investment Management will manage a portion of Foresters' US general account to support its life insurance business.

The acquired assets will become part of the Delaware Funds by Macquarie family of funds. In addition, Macquarie Investment Management has been chosen by Foresters to manage a portion of Foresters' general account supporting its life insurance business.

Separate from this transaction, Cetera Financial Group, Inc. has announced its intention to purchase select assets of the US brokerage and advisory business of Foresters Financial Services. Macquarie will also support the Foresters advisors joining Cetera through its investment management offering, Delaware Funds by Macquarie.

Macquarie Investment Management's acquisition transaction is subject to customary closing conditions, including the approval of the First Investors mutual fund shareholders.

Macquarie Investment Management is a global asset manager with offices throughout the United States, Europe, Asia, and Australia.

As active managers, we prioritize autonomy and accountability at the team level in pursuit of opportunities that matter for clients. Macquarie Investment Management is a division of Macquarie Asset Management, a global asset manager with more than USD 374.8bn in assets under management as of Dec. 31, 2018.

Since 1874, Foresters Financial has been providing socially responsible financial services to individuals and families. Foresters Financial includes The Independent Order of Foresters, the oldest non-denominational fraternal benefit society.

Cetera Financial Group is a network of independent firms empowering the delivery of professional financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions.
Date Published: 08/10/2019
Target: Foresters Investment Management/assets related to the mutual fund management business
Country: USA
Sector: Banking/Financial Services
Type: LBO
Status: Closed
Vendor: Foresters Financial
Buyer: Macquarie Investment Management
Terms of the deal were not disclosed