PIMCO has agreed to acquire Gurtin Municipal Bond Management, the firms announced on Tuesday. The combined firms will manage $38 billion in dedicated municipal bond assets.
In acquiring Gurtin, a specialist municipal bond manager that serves high- and ultra-high net worth individuals, PIMCO said it is broadening and enhancing its muni platform and capabilities for clients.
“PIMCO’s strategy is to grow mostly organically but we see exceptional value for clients in acquiring Gurtin, which is a premier muni investor with a like-minded culture that will enable us to provide clients with a more extensive and enhanced suite of muni strategies and services,” Emmanuel Roman, PIMCO’s CEO said in a press release. “We are investing in a broader and enhanced muni platform for clients which is backed by strong credit research and outstanding service.”
The firm will maintain its San Diego and Chicago offices and its investment team will continue managing its funds and separate accounts.
Bill Gurtin, the firm’s founder and CEO, will continue to be involved in the business for several years after the acquisition to oversee existing investment operations and support the integration.
“PIMCO’s expertise and our shared values and complementary skills in muni bond management make this partnership a no-brainer,” Gurtin said. “Gurtin began our journey 10 years ago with an unwavering focus on our clients and employees, so we are thrilled to enhance the client and employee experience by now creating a compelling combination in munis with PIMCO, which is one of the world’s leading fixed income investors.”
The transaction is expected to close in the fourth quarter. Terms weren't disclosed. Bank of America Merrill Lynch is acting as financial advisor and Latham & Watkins is legal advisor to PIMCO. Goodwin Procter acted as legal advisor to Gurtin.
