Legg Mason to pay $80 mln plus incentives for Fauchier: filing
(Reuters) - Asset manager Legg Mason Inc agreed to spend about $80 million plus future incentive payments to buy London hedge fund firm Fauchier Partners, according to a securities filing on Wednesday.
Legg Mason previously had not disclosed terms of its deal to buy Fauchier from BNP Paribas Investment Partners. It will be merged with Legg Mason's Permal fund-of-funds unit.
In addition, Legg Mason of Baltimore said in the filing it will pay up to another $56 million contingent upon the achievement of financial targets up to four years after the closing of the deal.
Legg Mason is in the midst of a search for its next chief executive after its prior leader, Mark Fetting, stepped down last fall. The Fauchier deal came on the watch of interim CEO Joseph Sullivan, who has also faced dissatisfaction from some of the company's far-flung investment affiliates over their financial arrangements with the parent.
Along with the deal, Legg Mason also renegotiated financial arrangements with Permal. According to Wednesday's filing, in the three months ended December 31, the new arrangements with Permal were the main driver of a $41.2 million increase in incentive-based compensation costs during the period.
Total compensation and benefits rose 17 percent to $308.2 million during the quarter, Legg Mason said.