New York Life Investment Management will acquire a 60% stake in Private Advisors, which manages $3.9 billion in hedge funds of funds and private equity funds of funds.
Terms of the deal, expected to close by Dec. 31, weren’t disclosed.
John Kim, NYLIM’s president and CEO, said in an interview that Private Advisors has both the breadth of product and the “perfect size” to be the hedge fund-of-funds offering in NYLIM’s growing alternatives lineup. He said the parent company’s distribution and capital resources will contribute to Private Advisors’ continued growth.
In a news release, Louis Moelchert, founder and managing partner of Private Advisors, said NYLIM’s multiboutique structure will allow his team to sustain its investment philosophy while benefiting from NYLIM’s deep resources.
Mr. Moelchert was not immediately available for further comment.