A publicly traded multiboutique asset manager in the U.S. is making a bet on a British firm that bets on other asset managers.
| Jonathan "Jon" Little|
Alderwood Partners LLP
Founder, Managing Partner
Today David Brown
, chairman and CEO of Victory Capital
that the San Antonio-based company has purchased a 15 percent stake in London-based Alderwood Partners
. Terms of the deal were not publicly disclosed.
(a former bigwig at Insight Investment Management, Dreyfus, BNY Mellon
, and Northill Capital) founded Alderwood, a focused private equity firm, earlier this year. The idea of Alderwood is to take minority stakes in boutique asset managers around the world. As part of the deal unveiled today, Victory will gain a board seat (as a general partner) at Alderwood and plans to invest in Alderwood's fund.
The Alderwood deal "significantly broadens [Victory's] international scope for future growth, particularly in the UK and on the European continent," according to Brown.
"In addition to expanding opportunities for complementary distribution alliances and strategic partnerships leveraging organizational and regulatory platforms in non-US jurisdictions, it also provides attractive return opportunity on our investment."
Little, for his part, lauds Victory's "excellent record of supporting businesses over the long term and providing wise counsel to the management teams it backs."
"It is a hugely credible investor and strategic partner," Little states. "Our organizations have strong cultural alignment, and we share the view that active management in focused firms will continue to generate robust cash flow and attractive risk-adjusted IRR."
Victory had $136.8 billion in AUM as of August 31.
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