TA Associates acquired a minority ownership stake in hedge fund-of-funds firm Evanston Capital Management through some of its private equity and subordinated debt funds.
Terms were not disclosed. Philip Nunes, a spokesman for TA Associates, declined to give the size of the stake the private equity manager has taken in Evanston Capital.
Evanston Capital will continue to operate independently under its own name, managing about $4 billion for institutional and family office clients, Mr. Nunes confirmed.
David Wagner, Evanston Capital's founder and CEO, will continue in his role “for the foreseeable future,” according to a joint news release from the two firms.
Principals of Evanston Capital all have signed multiyear contracts and non-compete agreements and will continue to invest their own money in the firm's hedge funds of funds. An equity incentive plan also was put in place to give more Evanston Capital employees an ownership stake, according to the release.
“Evanston Capital has a blue-chip management team with a long track record of successfully investing in hedge funds. … We anticipate Evanston Capital will continue its pace of measured growth and look forward to helping management pursue their objectives,” Todd Crockett, a TA managing director, said in the release.