New York Life Investment Management will acquire a minority stake in large-cap growth equity boutique Cornerstone Capital Management and increase its investment to a majority stake over a seven-year period, confirmed Yie-Hsin Hung, senior managing director and head of institutional investments with NYLIM.
Terms weren't disclosed.
NYLIM will adopt the Minneapolis-based firm's $346 million Keystone Large Cap Growth Fund, including it in the MainStay fund family and changing its name to the MainStay Cornerstone Growth Fund, pending shareholder approval.
Cornerstone will subadvise the fund.
In an interview, Ms. Hung said Cornerstone's concentrated large-cap growth equity style will allow NYLIM to expand and enhance its offerings for that market segment. NYLIM has an existing relationship with another Minneapolis-based boutique, Winslow Capital Management. NYLIM did a soft close earlier this year on the fund Winslow subadvises, the $17.3 billion MainStay Large Cap Growth fund, Ms. Hung said.
In a separate interview, Thomas Kamp, Cornerstone's president and chief investment officer, said he and CEO Andrew Wyatt are excited to team up with NYLIM's global organization. Cornerstone's predominantly institutional assets have almost doubled from $1.4 billion at the end of 2010 to roughly $2.7 billion currently, and harnessing NYLIM's organizational depth and marketing muscle will further enhance the firm's prospects, Mr. Kamp said.