Legg Mason Now Pure Play After Citigroup Deal

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Legg Mason Now Pure Play After Citigroup Deal

Legg Mason has jumped to being a "pure play" global asset manager.

In a complex set of deals all announced today hopes to accomplish the aim in one go.

*Exchanges Citigroup's Asset Management Business for Legg Mason's Broker-Dealer Business, plus other considerations
*Agrees to buy The Permal Group, a huge manager of fund of hedge funds.
*In doing so, Legg Mason becomes the 5th larges money manager in the U.S, the fifth largest U.S. mutual fund manager, one of the largest 5 fund-of-hedge-funds managers and the largest pure fixed incom manager.

After all that Legg Mason wil have assets under management of over $830 billion.

Legg Mason's chairman and chief executive officer, Raymond A. ("Chip") Mason, said, "As a result of these strategic initiatives, Legg Mason becomes a singularly focused, more profitable and certainly more influential organization within the global asset management community. We believe these transactions are in the best interests of our shareholders.

Permal's client base consists primarily of high net worth individuals and families domiciled outside the United States. Through its principal offices in New York and London, and additional offices in Boston, Singapore, Dubai, Nassau and Paris, the company serves clients throughout Asia, South America, Europe and the Middle East. Permal also expects to open an office in Hong Kong over the next 12-15 months.

Mr. Mason commented, "Permal has established itself as a leading funds-of- hedge-funds manager outside the United States, and just this year has entered the United States. In its 30-year operating history, Permal has established a reputation for delivering the kind of consistent investment performance that has attracted investors to alternative investments: attractive returns with low volatility.