Pacific Asset Management has agreed to acquire the entire share capital of Asset Value Investors (AVI), becoming the institutional partner of the independent boutique fund manager.
The combination links two investment management firms, with Pacific providing infrastructure, technology, operations and investor support, while AVI continues its engagement-led, bottom-up investment approach focused on companies trading below net asset value
The deal also includes Pacific’s purchase of the roughly 25% holding in AVI currently owned by Goodhart Partners. Founded in 1985, AVI has pursued a concentrated strategy that does not track benchmarks. Joe Bauernfreund, the firm’s chief executive and chief investment officer, joined in 2002.
He manages AVI Global Trust and AVI Japan Opportunity Trust, along with several funds and segregated accounts. Bauernfreund said: “This is an exciting next chapter for AVI. Pacific’s support will enable us to focus even more intently on what we do best, which is delivering differentiated investment outcomes for our clients, allowing us to grow the business while preserving our unique investment approach and the close relationships we have built with clients over many years.” The transaction is not expected to change the management of AVI’s investment trusts or funds.