OppenheimerFunds agreed to acquire institutional investment firm VTL Associates, said Peter Mintzberg, head of corporate strategy and development at OppenheimerFunds.
VTL manages $1.7 billion for investors across eight exchange-traded funds and its separate accounts.
“This acquisition is giving us three things,” said Mr. Mintzberg in a phone interview. “It’s giving us ETFs, which open a new avenue for us. It’s giving us smart-beta capabilities, and it’s giving us products that are ready to be plugged into our distribution channel” once the deal closes.
No decisions on branding have been made yet. There are no plans now to make any changes in VTL staff. OppenheimerFunds also plans to maintain VTL’s office in Philadelphia.
“We plan to invest in the VTL platform both to broaden product range as well as to launch new factor-based products,” Mr. Mintzberg added.
The transaction is expected to close by the end of the year. Financial terms of the deal were not disclosed.
OppenheimerFunds, including its subsidiaries, manages $220 billion in assets as of Aug. 31.
