Can First Eagle's New Owners and CEO Balance Stability and Growth?
The dust is settling after a year of change.
The investment boutique that advises the First Eagle funds and runs $100 billion total has seen a great deal of change lately. While the firm still offers some solid funds, it currently earns a Parent Rating of Neutral. Here are some of the salient points that helped us arrive at that rating.
In mid-2015, First Eagle Investment Management announced that the majority of the firm, which manages six funds (a seventh is subadvised), would be sold to private equity firms Blackstone and Corsair Capital. While roughly one fourth of the firm had been owned by another private equity firm, TA Associates, since 2007, this is the first time since 1999 that a majority of the funds' advisor has not been owned by the Arnhold family. That family was the longtime owner of investment broker Arnhold and S. Bleichroder, which purchased the funds and their advisor from French bank Societe Generale in 1999 and then changed its name to First Eagle. After the recent sale of First Eagle closed, Blackstone and Corsair now own 58% of the firm between them, while the family owns about 25% and firm employees own the remaining 17%.
Greg Carlson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.