RS Investments is acquiring the assets of Oak Value Capital Management, a GARP equity boutique, and bringing in Oak Value’s investment team as partners, said Terry Otton, CEO of RS.
Terms weren’t disclosed.
The $73 million Oak Value Fund will be renamed the RS Capital Appreciation Fund, pending shareholder approval and the deal’s closing, expected by early September, Mr. Otton said. RS also will look to bring over roughly $120 million in combined institutional and high-net-worth accounts managed by the Oak Value team.
The Oak Value team — led by David R. Carr Jr., a senior portfolio manager as well as the firm’s chairman and chief investment officer; Larry D. Coats Jr., senior portfolio manager, president and CEO, and Christy L. Phillips, portfolio manager and director of research — will become partners and equity holders in RS Investments.
Oak Value Capital Management will be dissolved upon closing of the deal. In the same interview with Mr. Otton, Mr. Coats said the deal will allow him and his team to focus entirely on investment management.