Legg Mason is buying a 75% stake of RARE Infrastructure for $205 million.
The Australia-based RARE holds $7.6 billion for institutional and retail clients, around the world, reports the Baltimore Business Journal. RARE, which stands for risk adjusted returns on equity, has offices in London and Chicago. The firm’s management team will maintain a 15% stake in the company, and existing minority owner, the Treasury Group, will hold 10%.
Legg Mason is a multi-boutique asset manager, and will use RARE to expand its alternatives offerings for clients. “The market for infrastructure investing has grown significantly over the past few years and RARE has participated in this growth, particularly in early adopter markets like Australia and Canada,” Legg CEO Joseph A. Sullivan said in a statement.
Sullivan has been vocal about seeking acquisitions to boost Legg Mason. The firm, which had $699 billion in assets under management at the end of June, was decimated by the financial crisis.
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