Legg Mason Inc. (NYSE: LM) and its affiliate, Permal, have closed a deal for Fauchier Partners, a European fund manager.

Fauchier, which was previously owned by BNP Paribas Investment Partners, manages funds of hedge funds. It has about $5.4 billion in assets under management. Terms of the deal were not disclosed.

Fauchier will combine with Permal to create a London-based company with about $24 billion in assets under management. The company will have a partnership with BNP Paribas that it expects to facilitate client service and new business development. The deal was originally announced in December.

Legg Mason, headquartered in Baltimore, Md., is a private equity firm with about $661 billion in assets under management. Permal is an alternative asset manager. 

Financial services industry