Virtus Investment Partners will acquire a 70% ownership stake in growth equity manager Sustainable Growth Advisers.
Virtus will pay a total of $129.5 million in cash to acquire the 23% ownership stake in SGA held by private equity manager Estancia Capital Management and 47% of the firm's equity held by SGA's partners, said Joe Fazzino, a Virtus spokesman.
The deal is expected to close in mid-2018.
SGA senior managers will retain a collective 30% ownership stake in the firm, sign long-term investment contracts, and reinvest some of their after-tax proceeds from the sale into the firm's investment strategies.
SGA will continue to operate independently under its own name, actively managing U.S. and global growth equity strategies, while tapping into Virtus' distribution network and centralized business support services.
SGA is Virtus' 19th boutique investment manager affiliate. Other investment partners in Virtus' lineup include growth equity managers Kayne Anderson Rudnick and Silvant Capital Management, Mr. Fazzino said.
SGA managed $11.6 billion for a largely institutional client base as of Dec. 31.
Long-term assets under management by Virtus affiliates totaled $88.8 billion as of Dec. 31.
