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Congress Asset Management to Acquire Century’s Investment Management Business

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Boston-based money manager Congress Asset Management has entered into an agreement to acquire the investment management business of Century Capital Management.

Century, a registered investment advisor also based in Boston, provides investment management services to institutions and individuals through two mutual funds – Century Shares Trust, a large cap growth fund, and Century Small Cap Select Fund, a small cap growth fund – and individually managed separate accounts.

Century has approximately $670 million in assets under management.

This acquisition would increase Congress’ size and bring complementary and value-added additions to its equity strategies. Congress, which has more than $8 billion in assets under advisement, specializes in diversified portfolios for institutions and high-net-worth individuals encompassing both equity and fixed income securities.

According to Daniel Lagan, chief executive officer and chief investment officer of Congress, the deal provides Congress with “greater economies of scale and helps position the firm for future growth in a challenging environment for active managers.”

“We were attracted to the strength and diversity of Century’s investment products,” Lagan said in a statement. “However, we are also very excited to work with Century’s investment team, which shares our deep commitment to researching high-quality companies.”

As part of the transition, Lanny Thorndike, Century’s managing partner, will be joining Congress, as well as Jeffrey Kerrigan, portfolio manager for the Century Small Cap Value Strategy, and Anand Vankawala, a member of the equity research team.

While Congress has offered small cap growth strategies for a few years, small cap value is something completely new to the firm, Lagan said.

“This acquisition will give us critical mass in the small cap growth fund structure and the small cap growth space, in general,” he said in a statement. “Small cap value is a diversifying mandate for Congress, and we’re excited to offer it through our distribution channels.”

The terms of the agreement are not being disclosed. The transaction is subject to Century Fund shareholder approval as well as other customary closing conditions, and is expected to be completed in the third quarter. 

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