Newport’s Pimco Advisors Sell International Subsidiary

Alleghany Asset Management agreed to buy Pimco Advisors Holdings LP’s international fund-management subsidiary, Blairlogie Capital Management, the companies said Monday.

Edinburgh, Scotland-based Blairlogie Capital, formed in 1992, manages about $800 million in assets, primarily in non-U.S. securities. It represents about 0.5% of Pimco’s assets under management, said William D. Cvengros, chief executive of the Newport Beach-based company.

Blairlogie “does not fit into Pimco Advisors’ development plans,” Cvengros said in a statement.

Stuart Bilton, president of Chicago-based Alleghany Asset, declined to comment on the financial terms of the transaction, as did Pimco spokesman Steve Hawkins.

Officials of Blairlogie asked Pimco to sell because they felt overshadowed by Pimco’s two largest subsidiaries, Pacific Investment Management Co. and Oppenheimer Capital Corp., which together manage more than $200 billion. Pimco completed its acquisition of Oppenheimer earlier this year.

“After the Oppenheimer Capital transaction, we approached Pimco management with our desire to find an environment where we felt we could increase our effectiveness and where distribution could be more focused on Blairlogie products,” said Gavin Dobson, Blairlogie managing director.

The transaction is expected to close in the first quarter of next year.

Alleghany Asset plans to keep Blairlogie’s staff intact, making changes only in how the firm markets its services, Bilton said. “We’re buying an intact company with top analysts, top managers,” he said.

Alleghany Asset and subsidiary Chicago Trust Co., which manages $30 billion, have been adding investment products through acquisitions and hiring money managers.

Alleghany Asset, which is owned by Alleghany Corp., generated 38% of its parent’s third-quarter earnings and just under 10% of its revenue.

Pimco’s other money-management affiliates include Cadence Capital Management, Columbus Circle Investors, NFJ Investment Group and Parametric Portfolio Associates.

The transaction was announced after the close of U.S. markets. Pimco Advisors shares fell 13 cents to $30, while Alleghany Corp.’s shares fell $1 to $185.25.