Wayne Hummer Adds AIP Assets

By Karla L. Yeh, Chicago Correspondent

By Karla L. Yeh, Chicago Correspondent

CHICAGO _ Current economic conditions present “good chances” for smaller investment firms to break into markets formerly dominated by larger companies, said Tom Zidar, chief executive officer and chairman of Chicago-based Wayne Hummer Wealth Management.

“It's a good time to do so,” Zidar told Markets Media Monday. “A lot of larger institutions are struggling in this space, as well as many other folks are pulling out.”

WHAMCO, an investment advisory firm for public and corporate pensions, private clients and Taft-Hartley funds, on Monday announced an agreement with State Street Global Alliance to buy a majority interest in its investment management business.

WHAMCO said it will form a new subsidiary after buying assets and assuming liabilities of Tampa-based Advanced Investment Partners, a State Street Global Alliance affiliate that actively manages domestic equity investment strategies. The companies did not disclose terms of the deal, but said it will close by the end of April after negotiating for the last nine months.

Dan Cardell, president of WHAMCO, said in a statement that acquiring a minority interest in AIP provides his firm with new equity and fixed income strategies to offer clients.

“Their institutional-quality domestic equity offerings and long, impressive track record complement our current product suite,” he added.

Zidar added that his firm, which primarily focused on private clients and some institutional clients, will now leverage AIP's “institutional quality money management across its existing client base.”

"Our strategy is to have multiple acquisitions over the next couple of years, just trying to round out our product set. Because we're not a huge company, it'll take time to digest and integrate,” Zidar said.

Chicago-based WHAMCO manages nearly $6 billion in client assets. The firm operates as a subsidiary of Wintrust Financial, a financial services holding company that focuses on community banking, wealth management, specialty finance and mortgage origination. Lake Forest, Ill.-based Wintrust Financial manages $10 billion in assets.

Safety Harbor, Fla.-based investment management firm AIP specializes in active quantitative U.S. equity strategies.

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Posted on March 16, 2009