TheStreet.com – Usually asset managers or banks buy hedge funds, not the other way around.
An exception is the recent decision by $10 billion hedge fund manager Angelo Gordon & Co. to buy New York equity investment firm ForstmannLeff Associates, as first reported by the Wall Street Journal. The reason is simple: investors want alternative investments and traditional products under one roof.
What’s less known is the nature of the transaction. In its recent letter of intent, Angelo said it would buy a majority interest in the $3 billion money management company, while Forstmann’s management team owns the remaining stake.
