Northill Capital is acquiring a 75% ownership stake in investment outsourcing specialist Strategic Investment Group.
Northill will acquire the majority equity stake from private equity manager FFL Partners, confirmed Jonathan Little, Northill partner and founder. Mr. Little declined to disclose the financial details of the deal, which is expected to close early in 2019 subject to regulatory approval.
Strategic Investment Group will continue to operate independently under its own name from its headquarters in Arlington, Va., said Brian A. Murdock, the firm's president and CEO.
After the deal has closed, the collective ownership by Strategic Investment Group's employees will rise to more than 25%, Mr. Little said, and further increases will continue over time.
Mr. Murdock described Northill Capital as "the perfect partner" because its investment in Strategic Investment Group is permanent capital "providing an internal mechanism for the firm's management to increase its ownership of the firm in the years ahead."
Northill Capital is a privately held, London-based asset management company that takes permanent ownership stakes in money managers. To date, Northill has acquired majority ownership in five managers running a total of $56 billion.
Strategic Investment Group manages $28 billion and will be the sixth money manager in Northill's portfolio.