IRELAND – The Bank of Ireland has agreed to buy more than 70% of US hedge fund group Guggenheim for €154m.

The bank – whose asset management arm has been hit by asset outflows and executive departures – said it would buy 71.5% of Guggenheim Alternative Asset Management, a US fund of hedge funds manager focusing on institutional and high net worth clients, for around $184m in cash.

It said Guggenheim – part of wealth management firm Guggenheim Partners - has around $2.8bn in assets under management.

The bank said the purchase was part of its strategy to buy niche businesses. “It brings a high quality team, solid investment performance and stringent risk controls and transparency features which will appeal to institutional investors,” it said in a statement.

“Over the last decade, we have built a significant international distribution capability, which delivers investment solutions to institutional investors and their consultants,” said chief executive Brian Goggin.

“This deal enables Guggenheim Alternative Asset Management to harness Bank of Ireland's international distribution capability which will accelerate its growth in the institutional market,” said Guggenheim’s managing partner Dominic Curcio.

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