Durham money management firm Piedmont Investment Advisors has agreed to acquire NCM Capital Management, a smaller investment management firm also based in Durham.
Financial details of the deal announced Wednesday, which involves two minority-owned firms, weren’t disclosed.
Piedmont, which has about 20 employees and specializes in equity and fixed income investments, reports it has $5.8 billion in assets under management. NCM, which has nine employees, manages about $470 million, including $425 million in fixed income and $45 million in equities.
With this deal, Piedmont will manage more than $1 billion in fixed income assets.
“NCM Capital has a great team of investors with a strong track record,” said Issac Green, Piedmont’s founder, president and CEO. “We think their capabilities complement our capabilities and, by putting the two teams together, we’ll be able to do a better job for the clients we have and have better growth prospects looking into the future.”
Maceo Sloan – NCM’s founder, chairman and CEO – will not be playing a role in Piedmont’s day-to-day operations. Instead, he will serve as an outside advisor to to the company.
Green said that Piedmont will definitely take on NCM’s four-person investment team and its head of operations, but no decisions have been made regarding the rest of the staff.
Sloan’s office referred a request for comment to Green.
Green said that he believes that, over the past year or so, Sloan came to the conclusion that the business would enjoy better growth prospects as part of a larger organization.
A decade ago NCM touted that it had well over $2 billion under management, much more than what it manages today.
“All asset managers have different ups and downs ... in their assets under management,” Green said. “There have been points in time where NCM was bigger than it is now.”
Last year Piedmont was tapped to manage $3 billion in investments for the North Carolina state pension fund, money earmarked for equity index funds designed to match the performance of stock indexes. That more than doubled Piedmont’s total assets under management at the time.
The NCM acquisition is expected to close by the end of September.