Buyback Near for L.A. Asset Manager

The partners of Bel Air Investment Advisors, which manages money for some of Los Angeles’ wealthiest families, expect to buy back control of the firm from Boston-based State Street Global Advisors within the next few months, one of Bel Air’s founders said Friday.

A deal would return the Century City-based firm to private ownership nearly five years after State Street, one of the world’s largest investment managers, bought a majority interest.

Bel Air, founded in 1997, manages more than $3 billion for about 250 families. Its client roster includes Barbra Streisand and Lee Iacocca.

State Street announced last year that it planned to exit the business of catering to rich individuals and focus instead on institutional clients. State Street oversees more than $1.4 trillion for large investors worldwide.

Todd Morgan, a co-founder and senior managing director of Bel Air, said the partners sought to repurchase the business rather than have it sold to another investment company. He said Friday that a deal was expected to be completed within the next few months, but he declined to reveal the terms.

A State Street spokeswoman confirmed that the company was negotiating a buyback of its stake by Bel Air’s partners. The company has said it expects to take a pretax write-down of as much as $170 million on the sale -- indicating it would be selling Bel Air for less than it paid.

Bel Air was founded by Morgan and other former Los Angeles executives of brokerage Goldman, Sachs & Co. The firm emphasizes a “very conservative” money management approach for individuals and families with $10 million or more in investable assets, Morgan said.