Robert W. Baird & Co. has agreed to acquire money manager Chautauqua Capital Management.
Financial terms of the deal were not disclosed. The transaction is expected to close in early 2016.
Under Baird’s ownership, Chautauqua Capital will be able to focus solely on the performance of their investment strategies, while Baird will provide the back-office services and support for Chautauqua Capital’s clients.
Chautauqua Capital’s investment team is led by Chief Investment Officer Brian Beitner, who formed the company in 2009. Mr. Beitner will remain CIO after the deal closes.
“Baird is increasing its global footprint,” said Reik Read, managing director, Baird Investment Management, in a phone interview. “Our clients have an interest in global and international equity products. And culturally, Chautauqua is a very good fit with Baird.” Baird does not currently have international and global equity strategies.
In the same phone interview, Mr. Beitner said: “We became impressed with Baird’s integrity and professionalism. We, too, saw it as a good cultural fit. We really liked Baird’s idea that they would allow us to be autonomous from an investment standpoint, yet integrate with them from a business standpoint.”
Added Mr. Read: “Our plan is to help with the back office and allow them to focus on portfolio and clients.”
Chautauqua Capital’s investment team will join Baird as equity owners in the business. Chautauqua will continue to operate under its name and will become part of Baird Investment Management, Baird’s institutional equity money management business.
Chautauqua Capital’s team will continue to be based in Boulder, Colo., where Baird has an office.
Chautauqua Capital actively manages growth-oriented international and global equity portfolios for institutional investors. It currently offer two strategies — international growth and global growth — with a little more than $700 million in assets under management.
Baird’s money management business includes Baird Advisors, a fixed-income manager with $36 billion in assets, and Baird Investment Management, an equity unit with nearly $3 billion in assets under management.
