After more than a decade as a public firm, Manning & Napier has decided to go private through a sale to Boston-based Callodine Group. The acquisition is in partnership with East Asset Management, owned by Terrence and Kim Pegula.
Priced at $12.85 a share—41 percent above Manning & Napier’s (NYSE: MN) closing share price of $9.11 on March 31—the deal is expected to close in the third quarter.
Manning & Napier CEO Marc Mayer will remain at the helm of the investment management firm and will roll over a significant portion of his currently held shares into the private company, officials say. The new private entity will become a wholly owned subsidiary of Callodine.
“Callodine is a long-term investor with deep roots in upstate and western New York, and a natural fit for us, culturally and strategically,” Mayer says. “We view the combination with Callodine as providing significant benefits to all stakeholders.”
With approximately $2 billion in assets, Callodine specializes in yield-oriented investment strategies. Callodine’s asset management subsidiaries target investment strategies across public equities, private credit, and real estate for individual and institutional investor clients.
For Manning & Napier, the acquisition is expected to fuel the company’s next phase of growth, providing capital, stability and additional investment capabilities.
“Manning & Napier represents a best-in-class investment management firm that we are thrilled to welcome to the Callodine Group platform,” says James Morrow, founder and CEO of Callodine, who grew up in Rochester.
A shareholder of Manning & Napier after it went public, Morrow points to the local firm’s history of delivering results for clients, a trend Callodine expects to continue.
Since its launch in 1970 by Bill Manning and Bill Napier, Manning & Napier has grown steadily. It marked $1 billion in assets in the early 1980s, and by 2001, the firm had $7 billion in assets. It went public in 2011, the same year it ranked No. 1 on Rochester’s Top 100 list of fast-growing firms.