Brinson Partners has a long history of strategic acquisitions that have significantly contributed to its business growth. The company acquired a 75% stake in a global investment management firm in 2015.
This acquisition marked a major milestone for Brinson Partners, expanding its global reach and capabilities. The firm's expertise in alternative investments and asset allocation complemented Brinson Partners' existing strengths.
As a result of this acquisition, Brinson Partners' assets under management (AUM) increased by over $10 billion. The partnership also established a new office in a major financial hub, further solidifying its global presence.
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Brinson Partners Acquisition
Gary Brinson led a US$100 million management buyout of his firm from First Chicago Corporation in 1989, acquiring approximately 75% of the company.
This move marked a significant shift for the firm, which would go on to build up to approximately US$36 billion of assets under management over the next five years.
Brinson focused on providing access for U.S. institutions to global markets, making the firm one of the largest managers of pension plans in the U.S.
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In 1994, Swiss Bank Corporation announced the acquisition of Brinson Partners, paying US$750 million for the company.
This acquisition resulted in a profit to Brinson and his partners of US$460 million on the sale of their 75% stake in the company.
Gary Brinson ran Swiss Bank's asset management business after the acquisition, and after the merger with UBS, he was named chief investment officer of UBS Asset Management.
The acquisition was part of Swiss Bank's series of acquisitions, which included O'Connor & Associates and S.G. Warburg & Co.
Brinson Partners continued to operate under its own identity and with no change in senior management after the acquisition.
The deal was valued at $750 million and involved the buyout of minority investors in Brinson Partners.
The major partners, including Brinson, would participate in an "earn-out" of their stakes over the next 11 years.
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Career
Gary Brinson was born in Seattle, Washington in 1943. His father worked as a bus driver and his mother worked at Sears as a clerk.
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Brinson graduated from Seattle University in 1966 and later received an MBA from Washington State University in 1968.
He entered the investment management business in the late 1960s as an analyst at Travelers Insurance Company. Brinson left Travelers in 1979 to join the trust department of First National Bank of Chicago as chief investment officer.
By 1981, Brinson had assembled the team that would become First Chicago Investment Advisors and later Brinson Partners. This team would play a crucial role in the development of the company.
First Chicago Investment Advisors became a separate money management company in 1983. Brinson established himself as a pioneer in the development of the theory of asset allocation.
Through the 1980s, Brinson pushed for allocation across stocks, bonds, cash, real estate, venture capital and other alternative asset classes using simple cost effective investment strategies. This approach would become conventional wisdom among money managers in the 1990s.
In 1989, Brinson led a US$100 million management buyout of his firm from First Chicago Corporation, acquiring approximately 75% of the company with a large group of partners and investors.
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Over the next five years, he built up the firm to approximately US$36 billion of assets under management. Brinson focused on providing access for U.S. institutions to global markets.
The firm had emerged as one of the largest managers of pension plans in the U.S. Brinson managed a series of mutual funds and had a successful track record.
In 1994, Swiss Bank Corporation acquired Brinson Partners for US$750 million, resulting in a profit to Brinson and his partners of US$460 million on the sale of their 75% stake in the company.
Following the acquisition, Brinson ran Swiss Bank's asset management business and later became chief investment officer of UBS Global Asset Management after the merger with UBS.
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