Investment giant Pimco strengthens municipal bond arm with Gurtin acquisition
US asset management giant Pimco has bought muni bond investment firm Gurtin, its first acquisition since appointing new chief executive Emmanuel Roman.
Gurtin Municipal Bond Management has more than $14bn (£10.78bn) of assets under management and the combined business will manage $38bn in dedicated municipal bond assets.
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It is the first major acquisition since Roman joined Pimco, which has a total of $1.77 trillion assets under management, from Man Group in 2016.
“PIMCO’s strategy is to grow mostly organically but we see exceptional value for clients in acquiring Gurtin, which is a premier muni investor with a like-minded culture that will enable us to provide clients with a more extensive and enhanced suite of muni strategies and services,” Roman said.
“We are investing in a broader and enhanced muni platform for clients which is backed by strong credit research and outstanding service.”
Last month Newport Beach-based Pimco hired former Blackstone vice-chairman John Studzinski to advise the company's most important clients.
Bank of America Merrill Lynch acted as financial advisor and Latham and & Watkins acted as legal advisor to Pimco on the transaction, which is expected to complete in the fourth quarter of this year.
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