FS Investments, a US alternative investment manager, has agreed to acquire Chiron Investment Management, a multi-asset investment boutique, for an undisclosed price.
Established in 2015, Chiron Investment is said to use an active investment approach based on quantitative analytics and fundamental research and its specialisation in dynamic portfolio construction and asset allocation.
The investment boutique, which is dually headquartered in New York and Kansas City, has around $1.8bn in assets under management.
Upon completion of the deal, FS Investments will add Chiron Investment’s three funds – Chiron Capital Allocation Fund (CCAPX), Chiron SMid Opportunities Fund (CSMOX), and Chiron Global Opportunities Fund (UCITS) to its existing offerings.
FS Investments CEO comments on Chiron Investment acquisition
FS Investments chairman and CEO Michael Forman said: “This is a unique opportunity to diversify our investment management business and expand distribution with a firm that shares our culture, has a high-quality management team and offers a differentiated investment approach.
“Together, we will grow our existing fund platforms while helping advisors better serve their clients with forward-thinking, holistic portfolio solutions.”
After the closing of the deal, Chiron Investment’s CEO and also its co-founder Enrico Gaglioti will join FS Investments in a senior leadership role. Ryan Caldwell, who is the chief investment officer and also co-founder of the multi-asset investment boutique, will continue managing its funds at FS Investments.
Caldwell said: “I am excited to continue managing the Chiron funds while working with the FS team to develop strategies that help advisors and investors build better portfolios.
“Going forward, best-in-class asset managers will need to provide solutions that combine differentiated traditional asset management and alternatives. This transaction positions us to be an industry leader in this regard.”
The deal, which is subject to customary regulatory approvals, approval by shareholders of the Chiron Investment’s funds, and other closing conditions, is expected to be completed in the first quarter of 2020.
