MetLife and Logan Circle wrap up $250m deal

The transaction comes as MetLife looks to expand its asset management business.

MetLife has closed its acquisition of Logan Circle Partners, formerly Fortress Investment Group’s fixed-income arm, the New York-based insurance company said on Friday.

The $250 million all-cash deal was announced in July. Fortress acquired Logan Circle, which was controlled by Guggenheim, for about $21 million in February 2010, according to media reports at the time. With more than $33.7 billion in assets under management, Logan Circle made up almost half of the $70.2 billion Fortress managed as of 31 March, Private Debt Investor previously reported.

“The acquisition of Logan Circle Partners is an important milestone as MetLife Investment Management expands its domestic and international investment management business for third-party clients,” MetLife chief investment officer and executive vice president Steven Goulart said in the statement.

A MetLife representative couldn’t be reached for further comment, while a Fortress spokesman declined to comment.

The acquisition comes as Fortress is working to close a $3.3 billion sale to SoftBank, a deal for which the former firm’s shareholders provided near-unanimous backing in July.

Fortress Class A shareholders would receive $8.08 per share, which represents a premium of 38.6 percent to the closing price of Fortress Class A common stock on February 13 and a premium of 51.2 percent to Fortress’s three-month volume-weighted average price, excluding dividends.

Logan Circle, which manages $35.5 billion as of 30 June, was founded in 2007. It invests in fixed income, both in the US and globally, with long duration being its largest strategy at $15.4 billion in assets. The firm operates out of Philadelphia and Summit, New Jersey.

MetLife Investment Management oversees $529.7 billion in assets for an array of limited partners, including public pension funds, insurance companies and sovereign wealth funds. It has an investment team of more than 800 people and also invests in real estate debt and real estate equity, infrastructure debt and structured finance.