BALTIMORE and NEW YORK CITY—Legg Mason Inc. and Lightyear Capital said Friday they had agreed to a deal in which Legg Mason will take a majority stake in Clarion Partners. Baltimore-based Legg Mason will pay $585 million for its 83% ownership, while Clarion's management team will retain their minority stake.

Clarion chairman and CEO Stephen Furnary calls Legg Mason "an ideal partner for Clarion Partners. He adds that the new owners "understand and relate well to our strong fiduciary culture and the importance of maintaining an autonomous Clarion partnership brand." Furnary will continue in his current role.

At New York City-based Lightyear, managing partner Mark Vassallo says, "With Clarion's strong market position, the company has attracted the interest of one of the world's largest global asset management firms. We are confident there is a bright future ahead for Clarion Partners."

GlobeSt.com reported two weeks ago that Legg Mason was in exclusive negotiations to acquire what was then an 80% stake in Clarion, in a deal that reportedly valued Clarion at $850 million. Founded in 1982, Clarion currently has $38.1 billion in assets under management, according to its website. The company was owned by ING Groep NV for 12 years beginning in 1999; Lightyear and Clarion's management bought the company from ING for $100 million, as part of the Dutch financial giant's divestiture of most of its real estate investment management business.