Principal Global Buys London HF Stake

Principal Global Investors will purchase a majority stake in hedge fund manager, Finisterre Capital.

Principal Global Investors (PGI) will purchase a majority stake in hedge fund manager, Finisterre Capital. The company will pay about $84.6 million for the 51% stake and an additional $30 million in 2013, subject to performance, adds Pensions & Investments.

Finisterre Capital will retain the remaining 49% stake in the emerging markets specialist manager. PGI was advised by Sandler O’Neill & Partners, while Fenchurch Advisory Partners acted as advisor for Finisterre. The deal is expected to close in the third quarter of 2011.

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