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Raymond James to Buy $27B Asset Managers

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Raymond James Financial says it is buying Scout Investments and its Reams Asset Management division, which will join its global asset management group Carillon Tower Advisers, for $172 million. 

Scout was founded in 1982 as a unit of UMB Financial in Kansas City, Missouri, with a focus on equity asset management, while Reams is an institutional-focused fixed income specialist. The two firms have a combined asset level of $27 billion.

(Related: Raymond James Is Ready to Robo)

“Building on our strong foundation of asset management expertise is a key component of the firm’s growth strategy and its focus on providing retail and institutional clients with sophisticated investment options,” said Raymond James Chairman and CEO Paul Reilly, in a statement. “As with all additions to the Raymond James family, Scout and Reams bring complementary cultures and management philosophies to the asset management division.”

Eagle Asset Management, ClariVest Asset Management and Cougar Global Investments are current affiliates of Carillon Tower, which performs sales, distribution and other services for these boutique asset management firms. Once the Scout/Reams deal is completed as expected later this year, Carillon should have $60 billion in assets under management and advisement.

Portfolio strategies created by Eagle, ClariVest and Cougar are sold by Raymond James advisors, as well as registered representatives across the industry. 

“We are pleased to welcome Scout and Reams to the Carillon Tower family and excited that we will be able to offer our clients a broader set of investment solutions” said Carillon Tower President and Chairman Cooper Abbott, CFA, in a press release. “The addition of these well-recognized franchises to our multi-boutique model is a natural extension of our long-term growth strategy.”

In March, Carillon hired six professionals to help it boost sales and distribution to institutions, sub-advisors and high-net-worth platforms. They joined the group from Russell Investments, UBS, BNP Paribas, Manning & Napier, CNL Securities and O’Shaughnessy Asset Management.

Last month, Cougar Global promoted Annie Hiraoka, a 20-year industry veteran, to the position of chief operation officer. About $1 billion is invested in its portfolios. 

Raymond James will release its next quarterly-earnings report on April 26.

(Related on ThinkAdvisor: Raymond James Is Ready to Robo)