##  [# Legg Mason Pursuing Precidian Buy ](/sections/news/legg-mason-pursuing-precidian-buy) 

 

# Legg Mason Pursuing Precidian Buy 

 

 

The ETF issuer plans to increase its ownership of the smaller company to as much as 75%.



 

 

 

 

 [![HeatherBell_green_bg](/sites/default/files/styles/author_image_icon/public/2023-03/heather2.png?itok=5J9vBlda)](/contributors/heather-bell) 

[By Heather Bell](/contributors/heather-bell)

 Feb 05, 2020

 Edited by: Heather Bell

 

 

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Legg Mason is planning to increase its stake in Precidian Investments in a process that could result in Legg owning as much as 75% of Precidian.

The process could take as long as nine months, with an estimated cost of up to $25 million, according to a Legg Mason spokesperson, who added that Legg Mason has begun the due diligence process for the transaction. Legg currently has a nearly 20% stake in Precidian.

Precidian is one of a handful of firms that has developed a SEC-approved structure for nontransparent actively managed ETFs. The “ActiveShares” structure has been licensed by 14 firms that currently represent one-quarter of the assets in U.S. equity mutual funds, according to Legg Mason CEO Joe Sullivan.

“We notified Precidian last week of our intent to exercise our option to acquire a majority stake in the company \[Precidian\] and we will be working very closely with them to continue the buildout of this important capability for our industry,” Sullivan said on a Jan. 29 earnings call.

Legg Mason’s Clearbridge affiliate has filed for an ETF using the “ActiveShares” structure that could be the first nontransparent fund to launch.

The [Clearbridge Focus Value ETF (CFCV)](https://www.sec.gov/Archives/edgar/data/1792795/000119312520015437/d822612dn1aa.htm) will invest in large-cap U.S. stocks with the intention of achieving long-term capital appreciation, according to its prospectus.

*Contact Heather Bell at <hbell@etf.com>*



 

 

 [ Heather Bell ](/contributors/heather-bell) 

 

 

  Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a…   [View Bio](/contributors/heather-bell)

 



 

 


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