Back To List Print Page
  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Merganser Capital Management LP
  • Annaly Capital Management, Inc.
  • Institutional Advisor
  • August 5, 2008
  • $4.8 Billion

Seller Details

Merganser Capital Management is a team of experienced and dedicated professionals focused on serving the fixed income investment needs of institutional clients. Since 1985, Merganser has worked to deliver consistent results and high quality service in order to build strong and lasting relationships with institutional investment management clients. Based in Boston, Merganser offers cash enhancement, short-term bond, intermediate bond and core bond strategies, as well as customized product portfolios.

Buyer Details

Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisor, FIDAC. The Company's principal business objective is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition and from dividends Annaly receives from FIDAC, which earns investment advisory fee income. The Company, a Maryland corporation has elected to be taxed as a real estate investment trust ("REIT").

Transaction Summary

Annaly Capital Management, Inc. has acquired Merganser Capital Management LP. Merganser is a Boston-based institutional fixed-income manager which, at June 30, 2008, had $4.8 billion in assets under management. The acquisition is expected to close in the fourth quarter of 2008. Terms were not disclosed.

The acquisition of Merganser extends Annaly's asset management platform into traditional fixed income strategies for institutional clients. Merganser, founded in 1985 by Edward R. Bedrosian, has expertise in a variety of fixed income strategies and serves a diverse group of clients, including pension funds, endowments, Taft-Hartley funds and public mandates. The transaction will be structured so that Merganser will be merged into a subsidiary of the Company and operate as a wholly-owned taxable REIT subsidiary of the Company. In connection with the transaction, key Merganser management personnel have signed employment agreements.

Back To List