First Eagle buys boutique manager Diamond Hill for $473m

First Eagle is set to acquire boutique investment manager Diamond Hill Investment Group for $473m (£352m), in a deal that it says will expand its capabilities in fixed income.

First Eagle’s strategies include alternative credit, equity and multi-asset. As well as expanding its footprint in traditional fixed income, the manager said that Diamond Hill’s US-focused multi-cap equity platform represents a strong complement to First Eagle’s offering.

First Eagle’s total assets under management will rise to $208bn following the acquisition.

“The acquisition of Diamond Hill is the next step in First Eagle’s ongoing effort to expand the range of investment solutions we offer to meet clients’ needs,” said Mehdi Mahmud, president and chief executive of First Eagle. “The cultural fit between our firms, fiduciary mindset, commitment to investment excellence and long-term orientation couldn’t be better.”

Diamond Hill’s investment strategies include differentiated US and international equity, alternative long–short equity and fixed income, with assets under advisement totalling $32.4bn.

“This partnership with First Eagle is an opportunity to accelerate the evolution of our strong foundation,” said Austin Hawley, portfolio manager and board director, and Henry Song, portfolio manager at Diamond Hill. “We will continue to apply the same disciplined approach and investment philosophy our clients rely on today, now supported by First Eagle’s expanded capabilities, resources and distribution network.”

Under the agreement, First Eagle will acquire all outstanding shares of Diamond Hill for $175 per share, a 49 per cent premium to Diamond Hill’s closing share price of $117.48 on 10 December.

Diamond Hill will maintain its headquarters in Columbus and continue operating under its existing brand.

The transaction is expected to close by the third quarter of 2026.