In his new position Mr Nattans will oversee The Permal Group, Private Capital Management and Legg Mason Investment Counsel and Trust Company, as well as Royce & Associates, and will report to chief executive Mark Fetting.

“ understands investment management and he knows how to maximise the power of our multi-affiliate business model. Jeff will continue to contribute to our strategy and M&A work as a member of the executive committee, but he will now assume direct responsibility for growing our wealth management franchise and supporting the continued success of Royce as the premier firm in small- and micro-cap equities,” said Mr Fetting.

Mr Nattans joined Legg Mason in 2006 as a managing director in the administrative management group, focusing on corporate strategy and mergers and acquisitions.

Since then Mr Nattans has played a key role in the firm’s strategic transactions and has served as a director for several of its subsidiaries, Legg Mason said in a statement.

Prior to joining Legg Mason Mr Nattans was a vice president in the investment banking division of Goldman Sachs.

Legg Mason, which is headquartered in Baltimore, Maryland, has 34 offices around the world. At 31 December 2008 the firm’s assets under management stood at $698 billion.