1251 Capital Group Partners with Management To Acquire Ziegler Capital Management
Chicago-based firm with $10.5 billion AUM across multiple equity and fixed income strategies
1251 Capital Group today announced it has partnered with management to acquire Ziegler Capital Management (ZCM or the Company) – a premier asset management boutique providing specialized investment strategies in both equity and fixed income markets.
As of September 30, 2019 ZCM had $12.4 billion in assets under management. Excluded from the transaction are $1.9 billion of fixed income assets, resulting in adjusted AUM of $10.5 billion. The Chicago based ZCM has been a wholly-owned subsidiary of Stifel Financial Corp (Stifel) since 2013. The Company has over 80 employees and additional offices in Milwaukee and St. Louis. The deal is expected to close in the first quarter of 2020 following requisite client consents.
“The team at Ziegler Capital Management has an impressive record of success, and the firm’s diversified client base and range of specialized investment strategies makes ZCM an excellent fit with 1251,” said Michael Wilson, Co-CEO of 1251 Capital Group.
Under the agreement 1251 Capital Group will acquire a majority stake in ZCM, while its management will also become shareholders with representatives joining the Company’s Board of Directors post-closing. ZCM’s current management team will continue to independently manage day-to-day operations and retain full control of the investment process and function.
“We look forward to partnering with the ZCM team to continue bringing to clients innovative and differentiated investment strategies across a range of channels and investment vehicles,” said John Hailer, President of 1251 Asset Management. “The opportunity to collaborate with such a high quality team with deep domain expertise is very exciting.”
ZCM’s team includes 19 best-in-class client-servicing professionals and more than 25 highly experienced investment management professionals. The ZCM sales and marketing team is focused on a multi-channel approach to connecting investors with the right products and vehicles.
“Management is thrilled to become shareholders in ZCM and to continue the growth in our products and services to existing and future clients. We are confident this partnership will enhance what we have done in the past and look forward to a successful future with 1251 Capital Group,” said Scott Roberts, President and Chief Executive Officer of ZCM.
The transaction is contingent upon the consent of ZCM’s institutional and mutual fund clients as well as certain other customary closing conditions and is expected to close in the first quarter of 2020.
In connection with the transaction, Morgan, Lewis & Bockius provided legal advice to 1251 Capital Group, Bryan Cave Leighton Paisner provided legal advice to Stifel, and Quarles & Brady provided legal advice to the management team of Ziegler Capital Management.
About Ziegler Capital Management
Founded in 2005, ZCM is a premier asset management firm that provides specialized investment solutions across the equity and fixed income markets. The firm has over 80 employees and is headquartered in Chicago with offices in Milwaukee, and St. Louis. ZCM has total adjusted assets under management of $10.5 billion (as of September 30, 2019).
About 1251 Capital Group
1251 Capital Group, Inc. is a financial services holding company with deep investing and operating experience in the asset management and insurance sectors. The firm was established to invest the capital of its founders and a select group of like-minded, outside shareholders consisting primarily of family offices and high net worth individuals. 1251 is structured as a corporate holding company with a permanent capital base, aligning the 1251 organization, management teams, and 1251’s shareholders around the common objective of creating shareholder value over the long-term. In addition, 1251 is an experienced value-added operating partner that can provide the strategic resources necessary to accelerate growth in the businesses with which it partners, empowering management teams to build enduring businesses that achieve their full potential. For more information, please visit: www.1251capital.com.