The chairman of the board of American Beacon Funds resigned Tuesday, but he may not be gone for good.

Kneeland Youngblood Pharos Capital Group managing partner

Owen Blicksilver, spokesman for Pharos Capital Group, confirmed that the private equity firm's co-founder and managing partner, Kneeland Youngblood gave up his official post with the mutual fund family in light of the announcement of the sale of American Beacon Advisors to Lighthouse Holdings, a company funded jointly by Pharos and the giant TPG Capital. (See "Private Equity Buys American Beacon", April 16, 2008.)

"The mutual fund company needs to decide on the deal," Blicksilver told MFWire, noting that the deal is scheduled to close sometime over the summer and that, to avoid an appearance of a conflict of interest, Youngblood wanted to let go of "his role on the mutual fund board while the transaction is pending." (For more on Pharos, see "Who Bought American Beacon?", April 16, 2008.)

"The new board makeup hasn't been decided," Blicksilver added.

So perhaps Youngblood will be returning to chair American Beacon Funds after the deal closes. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE