Reuters Italia – The UK asset management arm of investment bank Close Brothers said it has bought a majority stake in hedge fund company Fortune Group for an undisclosed sum, adding to similar dealsin the sector.
Fortune, founded 10 years ago, oversees a total of about $800 million (460 million pounds), while Close Asset Management had funds of 7.7 billion pounds at the end of January this year, Close said in a statement on Monday.
A spokesman for Close Brothers declined to say how much the firm had paid for Fortune or the exact size of the stake.
The deal, which is subject to regulatory approval, adds to a number of acquisitions of hedge fund businesses by banks and other financial companies in recent months.
“Alternative investments are a major growth area for us. Hedge funds are an important and fast-growing element within this area … it is no secret that Close is committed to building a high growth asset management platform,” Jonathan Sieff, chief executive of Close Asset Management, said in a statement.
