MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, December 11, 2025 First Eagle Will Take a $32B-AUMA AM Private A private-equity-backed fund firm in the Big Apple is poised to take a publicly traded, 48-year-old, Buckeye State fund firm private.
The deal has already been unanimously approved by Diamond Hill's board and is expected to close by the third quarter of next year, pending approval from the firm's shareholders and its mutual fund shareholders. The deal includes a 35-day "go-shop" period (which goes through January 14) during which the Diamond Hill folks can consider and even seek other possible offers.
First Eagle now has about $176 billion in AUM*, while Diamond Hill now has about $32.4 billion in AUMA*. Thus, the deal would, on a pro forma basis, the deal would boost First Eagle's AUMA by 18.4 percent to $208.4 billion. The $473-million price tag works out to $175 per DHIL share, which is a 49-percent premium over the fund firm's share price at closing yesterday (December 10). The price translates into about 1.5 percent of Diamond Hill's AUM. The First Eagle team notes that buying Diamond Hill would boost the acquirer's traditional fixed income business in particular. And they note that, once the deal closes, Diamond Hill will keep intact its own brand, its central Ohio headquarters, and its investment philosophy and process. Mahmud puts the Diamond Hill in the context of First Eagle being "a thoughtful curator of superb and differentiated investment strategies." And he notes that both firms have a "fiduciary mindset, commitment to investment excellence, and long-term orientation." "The acquisition of Diamond Hill is the next step in First Eagle's ongoing effort to expand the range of investment solutions we offer to meet clients' needs," Mahmud states. "The cultural fit between our firms ... couldn't be better." Austin Hawley and Henry Song, portfolio managers at Diamond Hill (Hawley also sits on the firm's board of directors), describe the First Eagle deal as a way to "accelerate the evolution of [Diamond Hill's] strong foundation." "We will continue to apply the same disciplined approach and investment philosophy our clients rely on today, now supported by First Eagle's expanded capabilities, resources, and distribution network," Song and Hawley state. "We are excited to continue serving our clients with our existing investment teams and look forward to the new opportunities this partnership will create." Brilliant calls the First Eagle deal "a testament to the strength and resilience" of Diamond Hill, a deal that will position her firm "for continued success over the long term." "We are incredibly proud of what our team has accomplished and look forward to building an even stronger future as part of First Eagle," Brilliant states. Diamond Hill traces its roots to the 1977 launch of the Banc Stock Group. In 2001, the firm transformed into Diamond Hill. On the First Eagle side, news of the Diamond Hill deal comes a decade after two PE firms bought First Eagle. Since then, First Eagle has made a couple other purchases in fixed income, though on the alternative side of the space. *As of September 30, 2025. Printed from: MFWire.com/story.asp?s=71814 Copyright 2025, InvestmentWires, Inc. All Rights Reserved |
