Palmer Square Capital Management [profile], a boutique under the umbrella of Montage Investments [profile], has acquired a majority interest in Kansas City-based Fountain Capital Management.

Fountain specializes in high yield bond and bank loan strategies, which fits into Palmer’s sweet spot of alternative products.

The deal provides added investment capabilities to Palmer Square, an asset manager focused on providing alternative and credit investment solutions to a wide range of investors.

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Company Press Release

Palmer Square Capital Management Acquires Fountain Capital Management

Provides alternative investment manager with high-yield bond and bank loan portfolio team

LEAWOOD, Kan. – January 8, 2013 – Palmer Square Capital Management today announced that it has signed a definitive agreement to acquire a majority interest in Kansas City-based Fountain Capital Management. Fountain provides added investment capabilities to Palmer Square, an asset manager focused on providing alternative and credit investment solutions to a wide range of investors.

Founded in 1990, Fountain Capital Management specializes in managing high yield bond and bank loan portfolios, with a particular focus on the higher quality portion within high yield credit. Similar to Palmer Square, which focuses on delivering absolute returns with low beta, Fountain seeks to add value over a full market cycle with a constant focus on managing risk.

“This is an exciting announcement for our firm,” said Christopher D. Long, president of Palmer Square. “As Kansas City-based asset management firms, Fountain and Palmer Square move in similar circles and have known each other and worked together for many years. I am thrilled to have an opportunity to work with the professionals at Fountain on a daily basis. Their experience with credit investing, stellar track record, and strong management team will add even more depth and expertise to our current and future investment offerings. ”

“We are looking forward to the opportunities this partnership will bring to our clients and team,” said Doug Campbell, co-founder and partner of Fountain. “Palmer Square has a strong history within the credit markets and the alternative investment space and has an enviable pedigree of providing outstanding investment products to the marketplace.” Fountain was advised by Colchester Partners LLC.

Palmer Square is part of Montage Investments, a diverse group of institutional investment managers that collectively manage more than $13 billion for a wide range of investors. Montage supports Palmer Square’s distribution efforts through its team of 35 distribution professionals who are located throughout the country. This distribution team combined with Palmer Square’s institutional sales team will support Fountain Capital Management as it seeks to expand its presence nationwide.

According to Gary P. Henson, CFA, CFP®, president and chief investment officer of Montage Investments, “Fountain has an exceptional track record in high yield and an experienced management team that will greatly enhance Palmer Square’s ability to continue delivering innovative investment solutions to the marketplace.”

About Palmer Square Capital Management

Palmer Square Capital Management provides investment advisory services and managed portfolios of credit and alternative strategies for a diverse set of clients across high-net-worth, registered investment advisory firms, broker-dealers and institutions. Visit www.palmersquarecap.com

About Fountain Capital Management

Headquartered near Kansas City and founded in 1990, Fountain Capital Management currently manages $1.1 billion. Fountain specializes in managing high-yield bond and bank loan portfolios with a particular focus on higher credit quality sectors. Visit www.fountaincapital.com

About Montage Investments

Montage Investments brings together a unique group of institutional investment managers – each offering a distinct approach to money management that reflects many decades of professional experience and proprietary investment strategies across global asset classes. Collectively, the Montage affiliates manage more than $13 billion, including over $1 billion in six mutual funds. The firm’s organizational approach is to allow individual investment managers to retain boutique processes, talent and culture with a goal of adding value to portfolios, while at all times meeting client objectives. Visit www.montageinvestments.com  

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