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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Advantus Funds & Series Fund (subsidiary of Securian Financial Group)
  • Waddell & Reed Financial, Inc.
  • Mutual Fund
  • April 24, 2003
  • $2.075 Billion

Seller Details

Advantus, an affiliate of Minnesota Life Insurance Company, offers investment products and services to institutional and individual investors. Advantus also provides investment management expertise for insurance and pension products sold through the Securian Financial Network.

Buyer Details

Waddell & Reed provides investment management and financial planning services for approximately two million retail accounts. The firm distributes its funds primarily through 3,200 proprietary financial advisors from more than 225 offices nationwide.

Transaction Summary

Berkshire Capital advised Minnesota Life in the sale of substantially all of Advantus’ actively managed equity assets to W&R. These assets are comprised of the Advantus Series Fund (8 actively managed equity insurance products: $1.2 billion), Advantus Funds (a retail fund family with 11 mutual funds: $525 million), and an additional $350 million in separate account and Minnesota Life general account assets.

Under this agreement, distribution will expand significantly for both firms. Beginning in mid-2004, W&R will market a customized individual annuity manufactured by Minnesota Life through the W&R distribution network. Minnesota Life will offer mutual funds managed by W&R – including all Ivy funds and the W&R Target equity funds – through its distribution systems, including its 1,800-member Securian Financial Network. Minnesota Life’s individual annuity sales are expected to further accelerate with access to the W&R advisor network, which will nearly triple Minnesota Life’s annuity distribution. Advantus will exit the business of actively managing all equities except real estate securities. This transaction will allow Minnesota Life to leverage W&R’s equity management expertise while focusing its own efforts on managing fixed income and real estate products.

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