Westwood Holdings Group, a Dallas-based investment and wealth management firm, has acquired the asset management business of Houston-based Salient Partners for $35 million in cash.

The transaction is subject to adjustments for working capital and client consent and includes deferred payments of up to $25 million over several years if certain revenue retention and growth targets are met.

The acquisition will boost Westwood’s total assets under management by 33% to $16.3bn.

Salient specializes in strategies focused on energy and infrastructure, tactical alternative and real estate investments. The firm manages $4.5bn in assets.

The acquisition expands Westwood’s offerings in multi-asset, real assets and alternatives strategies. The firm’s real estate strategies total $242 million in assets and are available as mutual funds and separately managed accounts.

Additionally, Westwood will purchase a substantial minority stake in Broadmark Asset Management, which was previously owned by Salient Partners, as part of the deal.

The investment strategies will be marketed under the Westwood Salient and Westwood Broadmark names and will be managed by the same investment teams, with the same stated investment objectives.

RBC Capital Markets served as exclusive financial advisor to Westwood Holdings Group, Inc. Willkie Farr & Gallagher LLP acted as external legal counsel.