Rosemont Investment Partners, a private equity firm that takes minority stakes in money management and wealth management firms, is acquiring a 20% stake in Martingale Asset Management, said Charles B. Burkhart Jr., Rosemont's founder.
Martingale is an active equity firm that manages absolute-return and long-only strategies. It has about $8 billion under management. Terms of the deal are not being disclosed.
"We are taking a 20% stake in the business (Martingale Asset Management) to help with succession and equity transition," Mr. Burkhart said.
William Jacques, Martingale's president and CEO, co-founded the Boston-based boutique in 1987 and served as its CIO for 25 years. He will remain with the firm, along with the rest of the management team. Twenty of Martingale's 25 employees are owners.
The investment is being made out of Rosemont's third fund, the $130 million Rosemont Partners III, which closed in 2013.
Rosemont executives do not plan to exit the investment by taking the firm public or selling it to a third party. "Martingale is set up to be perpetually majority employee owned," Mr. Burkhart said.
