JUNE 5, 2019
Madison Investment Holdings, Inc. (“Madison”), an independent investment firm based in Madison, Wis., with more than $17 billion in assets under management, and Broadview Advisors, LLC (“Broadview”) have signed an asset purchase agreement. Broadview is a highly respected, employee-owned investment firm based in Milwaukee, Wis. managing approximately $430 million, primarily in small-cap equity assets. “In addition to being a great cultural fit, the acquisition will deepen our investment talent and broaden our investment offerings” said Rich Eisinger, Madison’s Head of Equities, who oversees the Madison U.S. Equity Team that the Broadview small-cap managers are joining as part of the transaction. The acquisition is expected to bring the total assets managed by the Madison U.S. Equity Team to nearly $5 billion after the close of the transaction.
Upon completion of the transaction, Broadview Portfolio Managers Rick Lane, Aaron Garcia and Faraz Farzam will join Madison and continue managing their investment strategy that has been in place since 2001. The majority of Broadview’s assets are in its open-end mutual fund, Broadview Opportunity Fund (BVAOX). The fund’s track record goes back 22 years and includes Lane’s stewardship of small-cap assets during his years at Fiduciary Management Inc. (FMI). “This strategic acquisition adds an excellent small cap equity team and strategy to our already robust U.S. Equity offering. It is the perfect complement to our existing Mid Cap and Large Cap Equity strategies” said Steve Carl, Madison’s Chief Business Development Officer.
Rick Lane, the President of Broadview is excited that the new partnership allows the team to focus on investment excellence and portfolio management. Mr. Lane noted, “Madison’s history of independence makes them an attractive partner and their operational and distribution strength will greatly enhance our ability to focus on investment performance and serve our clients.” Lane describes his long-held investment philosophy as “disciplined and patient, investing in quality, enduring businesses run by strong management teams.” Madison’s Eisinger notes how closely this matches Madison’s equity investment approach, “we also believe in the power of fundamental research and share a commitment to high active share. And it is our view that investors can benefit from actively managed small cap portfolios so we are eager to offer another alpha-driven capability to clients.”
The transaction is subject to customary closing conditions, and is expected to close in the third quarter of 2019, pending regulatory approvals. The Broadview Opportunity Fund is scheduled to be merged into Madison Small Cap Fund with the combined fund’s performance history following the larger Broadview Opportunity Fund’s record. Broadview was advised in the transaction by Park Sutton Advisors.
Contact: Steve Carl / Chief Business Development Officer / 608-274-0300
“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC, and Madison Investment Advisors, LLC, which also includes the Madison Scottsdale office. Madison Funds are distributed by MFD Distributor, LLC. Madison is registered as an investment adviser with the U.S. Securities and Exchange Commission. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority.
Madison Investments shares all personnel and resources at their Madison, Wisconsin location. Statistical data is for the consolidated Madison organization. The Madison organization consists of its holding company, Madison Investment Holdings, Inc. and its affiliates: Madison Asset Management, LLC; Madison Investment Advisors, LLC; and Hansberger Growth Investors, LP. Asset information presented includes non-discretionary assets. Refer to each entity’s Disclosure Brochure for more information.