Oppenheimer Acquires Seattle-Based SNW Asset Management

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LOS ANGELES — OppenheimerFunds will acquire Seattle-based SNW Asset Management.

The acquisition will enable NYC-based Oppenheimer, a $222 billion global asset management firm, to grow its roster of high-net clientele, said Peter Mintzberg, chief strategy officer for Oppenheimer Funds.

"More and more clients in the high-net space want investments that provide tax-efficient yields and capital preservation," Mintzberg said.

The firms announced the merger Monday, but the deal is expected to close the end of April.

SNW's strategy complements the larger firm's existing platform of high-yield municipal bonds in the Oppenheimer Rochester Funds franchise that had a market valuation of $23.4 billion as of Dec. 31, Mintzberg said.

SNW, an independent advisor, began in 2002 as a subsidiary of Seattle-Northwest Securities Corporation, but split off before broker-dealer Piper Jaffray acquired the firm in 2013.

SNW specializes in customized taxable and tax-exempt fixed income and had grown to $2.7 billion in assets under management as of Feb. 28.

Oppenheimer Funds has 15 investment management teams that specialize in equity, fixed income, alternative, multi-asset and revenue-weighted exchange-traded funds.

Like the other boutique funds Oppenheimer has acquired, SNW expects to maintain its independence while leveraging the resources of the larger firm, said Eddie Bernhardt, SNW chief executive officer and lead portfolio manager.

Bernhardt and his 17-member company will continue to operate in Seattle and report to Krishna Memani, chief investment officer of Oppenheimer Funds.

Oppeheimer acquired Revenue Shares, a Philadelphia-based firm focused on environmental, social and governance offerings, in December 2015 and Dallas-based SteelPath, which specializes in master-limited partnerships, in 2012.

Bernhardt said he spoke with SteelPath before leading SNW Asset Management down this path and was assured that the parent company allows its boutique firms to maintain their independence in how they manage money while enabling them to leverage the larger structure.

Oppenheimer contacted SNW a year ago about acquiring the company.

The SNW chief executive also spoke with the firm's clients before making a move and received an enthusiastic response, he said.

"It is a win for the clients, because they get more resources and better technology and we will have a bigger, deeper team," Bernhardt said. "It is a win for the employees, because the parent company has a track record of retaining talent and building investors."

No layoffs are planned.

"We are not a big believer in doing acquisitions for cost synergies, our focus is revenue synergies," Mintzberg said. "Our idea is to invest more into SNW to make their infrastructure even stronger and to accommodate the growth of the business."

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