Two prominent private equity firms are purchasing UnionBanCal Corporation's mutual fund arm according to three separate sources. The firms are Nationwide Financial and Reich & Tang.
The mutual fund is HighMark Funds and its owner based out of San Francisco would be making the announcement in the next few days. The sources spoke on condition of anonymity.
Nationwide Financial based out of Columbus, Ohio would be purchasing 19 of the 24 funds from HighMark. The fund group of Nationwide is headquartered in Philadephia manages a total of US$45 billion in assets comprising 91 separate funds. With the acquisition, another US$4 billion would be added according to Lipper data obtained.
New York based Reich & Tang on the other hand would be acquiring five money market funds of UnionBanCal, comprising US$4.2 billion in assets. The firm is the New York subsidiary of Natixis Global Asset Management SA.
There was no information provided as to the terms and other conditions for the purchase and sale.
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