Feb 6 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 Dec. 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.