Hedge fund and private credit consulting firm Aksia LLC is acquiring alternative investment consultant TorreyCove Capital Partners, said James Vos, Aksia CEO, and David Fann, TorreyCove president and CEO.
The transaction is expected to close in the first half of 2020. Terms of the deal are not being disclosed. The combined firm will have more than $160 billion in assets under advisement and some 240 professionals worldwide.
The firm will remain headquartered in New York. TorreyCove's five managing directors will become Aksia partners. Mr. Fann will assume the role of vice chairman of Aksia.
"The combined firm is going to be a strong player in pan-alternative solutions," Mr. Vos said. "There are efficiencies to be gained by covering adjacent alternative verticals including in technology, portfolio advisory, operations and reporting. Aksia clients will be able to benefit from TorreyCove's talented private equity and real assets professionals."
The TorreyCove acquisition is part of a natural progression for Aksia, Mr. Vos added. "Private credit has become a major area of focus for Aksia, picking up in the last five years. After private credit, the next logical step is private equity and real assets."
Mr. Fann said that the firms have similar ways of doing business.
Firm executives plan to continue focusing on research and offering client solutions. "We're not in the asset-gathering business and I don't envision OCIO or getting into long-only," Mr. Vos said. "We are alternatives specialists, we love what we do and look forward to TorreyCove's staff joining ours."
Mr. Fann added that the focus is on creating solutions for clients. "We've evolved into a solutions business," creating customized investment strategies for clients — "many of whom don't have the bandwidth or expertise whether it's in co-investments, investments in Asia or solutions requiring knowledge of multiple asset classes."