Rocaton Investment Advisors acquired a minority stake in IndexIQ, a developer of index-based alternative investments, as part of a broader partnership between the two firms.
Terms of the deal and the size of the stake were not disclosed.
As part of the deal, Rocaton and IndexIQ will jointly develop and launch institutional quality investment solutions.
In a telephone interview, Adam S. Patti, CEO of IndexIQ, said his firm will look to tap Rocaton’s intellectual capital in providing asset allocation and investment solutions to institutional investors to “build out our suite of products with them.”
IndexIQ, launched in 2006, has almost $500 million in assets under management in a range of ETF and mutual fund strategies, including the IQ Alpha Hedge Strategy Fund and the IQ Global Resources ETF.
Asked if Rocaton’s investment in IndexIQ could compromise the investment consultant’s role as a disinterested gatekeeper, Mr. Patti said his firm’s new partner has made it clear they’ll be very careful about not pushing their clients toward IndexIQ products.
Robin Pellish, CEO of Rocaton, couldn’t immediately be reached for comment.