Pequot Capital Management, with $6.5 billion under management in health care and technology hedge funds, reached a preliminary agreement to acquire Willow Creek Capital Management, which runs $600 million in long-short small-cap hedge funds, confirmed Jonathan Gasthalter, a Pequot spokesman. He would not disclose terms but said the deal will likely close early next year.
The firm is expanding its investment strategy lineup in order to add multistrategy hedge fund management capabilities. New strategies being considered are credit funds, a distressed debt fund and a short-biased credit arbitrage fund. The acquisition of Willow Creek's small-cap fund and investment team is part of Pequot's expansion.
