Wellington Management and The Hartford announced Wednesday that they entered into an agreement for Wellington to acquire Hartford Funds from The Hartford in a transaction the firms said is valued at a net present value of about $1.9 billion.
The transaction is expected to close in the first quarter of 2027, according to the firms.
As part of the agreement, The Hartford will receive $300 million in cash at closing and additional payments based on the available after-tax cash generated by the combination of Hartford Funds’ business and Wellington’s business supporting Hartford Funds, including the sale of certain other Wellington-sponsored products in the U.S. wealth market, over a seven year period after the deal closes, the firms said.
After the deal closes, Hartford Funds will be integrated into Wellington’s U.S. Wealth business and the business will drop the Hartford branding and operate under the Wellington brand, the firms said.
“This is the first acquisition Wellington has made since it went private over 50 years ago,” a spokesperson for The Hartford told Wealth Solutions Report by email. “This is a deliberate, targeted acquisition of a business we know deeply, with capabilities that are highly complementary to Wellington’s investment platform and directly aligned with our Wealth and broader firm strategy.”
“This is the first acquisition Wellington has made since it went private over 50 years ago.” – spokesperson for The Hartford
The spokesperson added, “This is not a shift toward like-for-like M&A or consolidation for scale. Wellington remains an independent, private partnership and our focus remains on being a world-class investment manager – delivering differentiated outcomes for clients across markets and asset classes. This transaction accelerates growth in an area we believe is critical to our future while preserving who we are.”
The combination of Wellington’s investment expertise and Hartford Funds’ advisor relationships will enable Wellington to offer advisors and investors wider access to investment capabilities, a deeper distribution platform and more integrated support across the U.S. wealth management sector, according to the companies.
The firms pointed out that have worked together since 1978, and in 1984 launched a sub-advisory partnership for mutual funds. Since then, their partnership has expanded to include more capabilities such as ETFs and additional investment strategies.
Wellington now sub-advises 83% of Hartford Funds’ approximately $160 billion in assets, supported by a more than 160-person, client-facing team, the firms said.
“For more than 40 years, Wellington and Hartford Funds have partnered together in support of advisors and investors, and I’m excited about what this combination means for the future of both organizations,” Jean Hynes, CEO and Managing Partner at Wellington Management, said in a news release.
“Together, we are building on the strengths that have defined our relationship to reinforce our commitment to the U.S. wealth market through expanded access to investment capabilities, broader distribution reach, and enhanced resources for advisors and investors.”
“We are proud of the strong advisor-centric fund company that we have built, powered by Wellington’s outstanding investment capabilities for many years,” Christopher Swift, CEO and Chairman of The Hartford, said in the release.
He added, “This transaction allows us to realize immediate and continued value for The Hartford’s shareholders and positions Hartford Funds’ exceptional people for ongoing success. This combination creates the ideal long-term home for Hartford Funds.”
J.P. Morgan Securities is acting as financial advisor to Wellington, while Paul, Weiss, Rifkind, Wharton & Garrison is serving as the company’s legal advisor.
Goldman Sachs is acting as financial advisor to The Hartford. Weil, Gotshal & Manges is serving as its legal advisor.
Wellington said it managed over $1.35 trillion, as of April 30, for fund sponsors, global wealth managers, family offices, pensions, endowments and foundations, insurers, and other clients. It serves as an advisor to more than 2,500 clients in over 60 countries, it said.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
