Genworth Financial Acquires Alternatives Provider Altegris

Will pay $35 million to add Altegris's managed futures and hedge fund products to Genworth platform

Genworth Financial said Tuesday that it would acquire the Altegris companies, adding access to that firm’s alternative investment products on Genworth Financial Wealth Management’s (GFWM) platform available to RIAs and broker-dealer advisors. The acquisition is expected to close by year-end 2010; Genworth said that upon closing it would pay $35 million in cash for Altegris, along with “additional performance-based payments.”

Once completed, Genworth said the addition of Altegris’s $2 billion in client assets, in managed futures and hedge fund products, would leave it with about $23 billion in AUM. In a statement, Gurinder Ahluwalia, president & CEO of GFWM , says the acquisition “will provide independent financial advisors an expanded set of offerings that are integral to serving the needs of their clients."

(An article by Rydex AdvisorBenchmarking Maya Ivanova in Investment Advisor’s October2010 issue confirmed advisors’ growing interest in alternative investments.)

Genworth Financial Wealth Management is based in Pleasant Hill, Calif.; parent company Genworth Financial Inc. was born out of the former GE life insurance business and went public in 2004 in an IPO then valued at $2.8 billion. Altegris is based in La Jolla, Calif.

On Oct. 14, Genworth named Patrick Kelleher (left) as president and CEO of its Retirement and Protection division, and executive VP of the company. At the same time, Kevin Walker was named senior VP and CFO of Retirement and Protection.

(Altegris’s Matt Osborne blogs on managed futures for AdvisorOne.com)

Reprints Discuss this story
This is where the comments go.