Fort Worth-based American Beacon Advisors Inc. is being acquired from TPG Capital and Pharos Capital Group LLC by investment funds affiliated with Kelso & Company and Estancia Capital Management. The parties expect to close the sale in the second quarter of 2015 subject to approvals of both boards, shareholders and consent from American Beacon clients. Terms of the agreement were not disclosed, but Reuters reported the deal was valued at more than $600 million.
“We are pleased to welcome our new partners Kelso and Estancia and are looking forward to building on our successes with a new ownership team,” said Gene L. Needles Jr., president and CEO of American Beacon. “This partnership enables us to move forward with the same focus on and commitment to our clients with no disruption to our day-to-day operations. Additionally, Kelso’s and Estancia’s resources will help accelerate our strategic growth plans to the benefit of our clients.”
American Beacon was founded in 1986 in Fort Worth. The firm manages a series of mutual funds open to institutional investors, retirement accounts and individual investors. In 2008, AMR Corp, the former parent of the current American Airlines Group Inc., sold American Beacon to Pharos and Fort Worth-based TPG for $480 million, with AMR keeping a small stake. Kelso & Company and Estancia Capital Management are being advised by Sandler O’Neill + Partners L.P. American Beacon is being advised by J.P. Morgan Securities LLC. RBC Capital Markets and Barclays are providing committed debt financing for the transaction.