An alternative investing giant with $547 billion in assets under management and supervision is about to buy a PE-backed mutual fund firm that specializes in liquid alts.

Thomas Ibberson "Tom" Florence 361 Capital Chairman, CEO

Yesterday, Erik Hirsch, vice chairman and head of strategic initiatives at Hamilton Lane, and Tom Florence, chairman and CEO of 361 Capital [profile], confirmed that Bala Cynwyd, Pennsylvania-based Hamilton Lane has agreed to acquire Denver, Colorado-based 361. The deal is expected to close later this quarter.

361 is currently majority-owned by employees, while Lighthouse Partners (a fund-of-hedge-funds specialist) and Lovell Minnick (a private equity firm) both own minority stakes. According to 361's most recent form ADV, filed last July, Lighthouse and Lovell Minnick each own between 10 percent and 25 percent of 361. At the time, according to the filing, 361 had 23 employees (not including clerical staff) and $809 million in AUM across its four mutual funds.

Piper Sandler & Company is advising 361 on the deal.

Florence and Josh Vail, 361's president, are expected to stay on in Denver with the firm, the Hamilton Lane team notes. Hirsch puts the deal in the context of the Hamilton Lane team's interest in boosting their efforts in the private wealth channel.

"We are committed to reaching, educating and supporting private wealth investors interested in the private markets," Hirsch states. "Bringing on the experienced and strong team from 361 Capital furthers our ability to deliver on that objective."

"Our 20 years of experience in the alternative private wealth space, together with Hamilton Lane's investment platform, reach and deal flow, will be a powerful combination," Florence states.

The sale to Hamilton Lane comes 20 years after Brian Cunningham founded Trail Ridge Capital. Florence invested in the firm in 2009, then in 2010 he rebranded it as 361 Capital and refocused it specifically on liquid alts with the launch of its first mutual fund. Lighthouse invested in 361 in 2012, and Lovell Minnick followed suit in 2014. 

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