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Posts made in February, 2016

Legg Mason Announces Combination of EnTrust Capital and Permal Group

By on Feb 8, 2016 in Business

On January 22, 2016, Legg Mason confirmed its combination with Entrust Capital. EnTrust is a leading hedge fund company, which operates as an independent entity, with over $12 billion total assets and investment strategies. This is not forgetting the company has a mix with Permal group, so Legg Mason’s merger extended to both companies to help make them stronger and more competitive for the market. The new partnership will see the birth of a new brand, EnTrustPermal, where Legg Mason will claim over 65% of the entity. 35% of the total will be owned by Gregg S. Hymowitz, who is the co-founder of EnTrust. Inspiring growth The new merger will mean more resources to take on the market as well as sufficient management and technical support. This will see a rapid evolution of new and innovative products, alternative products as well as expanding the business to offer more room for investment. The hedge fund market will be able to increase private debt offerings and proprietary investment opportunities, all which will spur growth and stability for the company. A larger investment platform materially will lead to customized investment solutions. Investment strategies According to Joseph A. Sullivan, the CEO, Legg Mason, the merger will bring together leading brands, which are manned by able and verified professionals. This will broaden their ability to grow with more focused strategies and plans for the newly-born company. This will create a potential growth engine for each and will allow for better creation of a standing in the market. EnTrust has offered proven results and their record at driving growth and innovation has seen them realize more than 20% growth since the crisis. In that regard, executives from both sides can see a bigger investor base and probably the capability to penetrate the global market with time. Reduce earnings volatility Merging the two firms will reduce the earnings volatility that has hit the industry for some time. Investors will now be able to inject their money into the hedge fund comfortably due to the bigger capacity that has been developed from the merger. The history of each of these companies is also good, meaning there is hope for better performance, which is set to lead to...

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