Genworth Financial announced that it has reached an agreement to acquire alternative-investments platform Altegris Advisors LLC for approximately $35 million.
Genworth Financial Inc. this morning announced that it has reached an agreement to acquire alternative-investments platform Altegris Advisors LLC for approximately $35 million. The deal also includes some performance-based payments.
Altegris, which has approximately $2 billion in client assets and provides clearing services to accounts representing $800 million in institutional assets, is expected to help Genworth provide a broader product offering to independent financial advisers.
“As a specialist with deep roots in designing and delivering alternative-investment products, we are excited to introduce our capability and expertise to a broader group of financial advisers,” said Jon Sundt, president and chief executive of Altegris, which provides investors and advisers with access to managers of hedge funds, funds of funds and managed futures, among other alternative investments.
The deal was spawned following a year of research into what Genworth clients were most interested in — but not getting on the current platform — according to Gurinder Ahluwalia, Genworth's president and chief executive.
“We pulled together our field advisory board and talked about the capabilities that we needed, and the No. 1 item was alternatives,” Mr. Ahluwalia said.
He added that the original idea was simply to include Altegris products and strategies on the Genworth platform.
“We started to like them so much because of their integrity and the culture,” Mr. Ahluwalia said. “So instead of working with them, we decided to buy them.”
He added that the plan is to keep the Altegris platform intact as part of Genworth's.
The combined operation will have $23 billion under management. The deal is expected to close by the end of the year.
