During Legg Mason's [profile] earnings call, its chief executive Joseph Sullivan announced that the firm has sold its Private Capital Management unit, Reuters reports.

Sullivan said the company will take $3 million charge in connection with the sale, Reuters reported.

Private Capital Management was founded in Naples, FL in 1986. The firm manages equity portfolios for high net worth individuals and institutional investors.

Single investment discipline - All Capitalization Value Equity - for separate accounts, as well as privately offered investment vehicles and a mutual fund.

PCM had been a wholly owned subsidiary of Legg Mason since August 2001 and managed approximately $1.1 billion in assets as of December 31, 2012.

During the call, the Legg chief executive had said the transaction should close by the end of the September quarter, while the ongoing P&L impact to Legg Mason "will be immaterial."

The move comes five months after Sullivan was named chief executive.

To read more, click here.

To read the earnings call transcript, click here. 

Edited by: Casey Quinlan


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