First Eagle to Acquire Diamond Hill in Asset Management Merger

Diamond Hill Securitized Credit Fund, a specialized interval fund that focuses on niche fixed-income markets and invests in securitized assets – debt instruments backed by specific pools of collateral, announced that First Eagle Investment Management has reached a definitive agreement to acquire Diamond Hill Investment Group Inc., the fund adviser’s parent company.

The deal, announced following the signing of a merger agreement last month, will see Diamond Hill, the parent company of Diamond Hill Capital Management, become a wholly-owned subsidiary of First Eagle. The transaction is expected to close by the third quarter of 2026, pending customary closing conditions and shareholder approvals.

While the merger is a corporate-level transaction, it triggers a specific regulatory requirement under the Investment Company Act of 1940.

Because the acquisition constitutes a “change in control” of the investment adviser, the existing management agreements between Diamond Hill and its funds – including the Diamond Hill Securitized Credit Fund – will automatically terminate upon the deal’s closing. In order for Diamond Hill Capital Management, or DHCM, to continue to provide investment management services to the fund after the transaction, shareholders are required by the 1940 Act to approve a new investment management agreement with DHCM.

Despite the change in ownership, the board of trustees has signaled a commitment to stability. The proposed new management agreement is “identical in all material respects” to the current one, meaning no changes to fee structures are expected. The merger is not expected to result in any changes to the fund’s investment objectives, policies, or daily portfolio management.

A special shareholder meeting will be held to elect a new nine-member board. While the board will see fresh faces, three current trustees will remain as emeritus advisers to provide institutional knowledge.

For First Eagle, the acquisition adds Diamond Hill’s respected bottom-up fundamental research capabilities and its specialized securitized credit expertise to its broader platform. For Diamond Hill, joining the First Eagle umbrella provides the backing of a larger global distribution network.

The deal remains contingent on obtaining necessary fund and shareholder consents. If shareholders fail to approve the new agreements before the Q3 2026 deadline, the fund could face significant operational hurdles.

Click here to visit the AltsWire directory page.