Updated with correction
FLAG Capital Management, an alternative investment manager, is buying Squadron Capital, a Hong Kong-based private equity firm with $1.5 billion in assets under management, from Search Investment Group, confirmed Peter Denious, partner of FLAG Capital Management.
The transaction would bring FLAG's total assets under management to $6 billion. Both firms manage private equity funds of funds. FLAG also manages venture capital and real asset funds of funds.
The acquisition is expected to close by Dec. 31. Terms weren't disclosed.
The Squadron Capital team of 10 investment professionals will join FLAG; Squadron CEO David Pierce will become a partner at FLAG. Once the deal is completed, the combined team of 12 investment professionals will begin raising a new Asian private equity fund of funds, Mr. Pierce said.
Search Investment Group is the private investment company of Robert W. Miller and his family. Mr. Miller is a founding shareholder of Duty Free Shoppers, which is now co-owned by LVMH Moet Hennessy Louis Vuitton.
Search Investment Group will continue to be a “significant” investor with $40 million committed to each of Squadron Capital's funds.