Can First Eagle's New Owners and CEO Balance Stability and Growth?
The dust is settling after a year of change.
The investment boutique that advises the First Eagle funds and runs $100 billion total has seen a great deal of change lately. While the firm still offers some solid funds, it currently earns a Parent Rating of Neutral. Here are some of the salient points that helped us arrive at that rating.
In mid-2015, First Eagle Investment Management announced that the majority of the firm, which manages six funds (a seventh is subadvised), would be sold to private equity firms Blackstone and Corsair Capital. While roughly one fourth of the firm had been owned by another private equity firm, TA Associates, since 2007, this is the first time since 1999 that a majority of the funds' advisor has not been owned by the Arnhold family. That family was the longtime owner of investment broker Arnhold and S. Bleichroder, which purchased the funds and their advisor from French bank Societe Generale in 1999 and then changed its name to First Eagle. After the recent sale of First Eagle closed, Blackstone and Corsair now own 58% of the firm between them, while the family owns about 25% and firm employees own the remaining 17%.
Greg Carlson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.