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AMR completes sale of American Beacon financial group

AMR Corp. said Monday it completed the sale of its American Beacon Advisors investment management firm to a group headed in part by TPG Capital.

AMR will take a small stake in the parent of Lighthouse Holdings, the group that bought American Beacon for $480 million.

The deal, announced in April, raises money for AMR, parent of American Airlines, but means the loss of a highly profitable operation.

American Beacon, formed by AMR in 1986, is a mutual-fund sponsor with 19 funds, and it also manages AMR’s pension fund. As of the end of 2007 it reported $65 billion in assets under management, enough to rank it among the nation’s 75 largest mutual-fund companies.

According to American Beacon, last year it reported $48 million in pretax income on $101 million in revenues. The company said its revenues and profit were up about 40 percent compared with 2006.

American Beacon Chairman Bill Quinn said in April that, even though the company has been growing rapidly, "we’re still not fully exposed to the vast marketplace." He said then that the company, which already markets itself to organizations that run private employers’ 401(k) retirement plans, expects to expand into the public-employee pension market as well.

Lighthouse Holdings is owned by investment funds affiliated with Pharos Capital, LLC, and TPG Capital, both leading private equity firms.

TPG Capital is part of TPG, which has headquarters offices in Fort Worth and San Francisco. TPG counts among its principals David Bonderman, previously chief investment adviser to Fort Worth billionaire Robert M. Bass.

This report contains material from Star-Telegram archives.

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