Denali Advisors, a quantitative investment boutique, has negotiated to buy out one of its outside stakeholders, with an eye to boosting employee ownership, said Robert G. Snigaroff, the firm's president and chief investment officer.
Mr. Snigaroff, speaking Feb. 25 at a board meeting of the $32 billion Illinois Teachers Retirement System, Springfield, didn't name the stakeholder or provide terms of the buyback, which he said should be completed sometime during the next few months.
Denali manages $200 million of Illinois Teachers' equity portfolio.
According to materials Denali provided to board members, the firm is 57% employee-owned, with another 36% held by private equity investor Lovell Minnick Partners and the remaining 7% owned by Native American Corp. and Huna Totem Corp.
Asked if Denali was buying back Lovell Minnick's stake, Managing Director Jeffrey D. Lovell declined to comment beyond saying, “We have had a very positive association with Bob and his team at Denali for many years and are supportive of their interests.”
Calls to Denali were referred to Mr. Snigaroff, who didn't immediately respond to e-mails seeking comment.