The management team of Advisory Research Inc. on Friday completed a buyout from investment bank Piper Jaffray Cos., confirmed Matthew K. Swaim, managing director and executive chairman.
Mr. Swaim in an interview declined to provide the financial terms of the deal, but noted that the buyout was "100% capitalized by the partners of the firm and will remain employee owned."
Advisory Research was launched in 1974 and was acquired by Piper Jaffray in 2010.
"We are grateful to Piper Jaffray for their support over the years and for positioning us to go forward as an independent asset manager. Nothing will change for our clients," said Ellen Freeman, managing director and head of operations, in a company news release.
Advisory Research will remain in its current Chicago headquarters with its current investment management team in place. However, there will be "a handful" of layoffs of marketing staff as the firm "redirects its sales efforts to institutional investors," Mr. Swaim said.
Previously, ARI had a combined marketing department that included retail-oriented sales staff who served the firm's midstream energy master-limited-partnership. That business was acquired by Tortoise Capital Advisors on Sept. 20.
Mr. Swaim said 98% of the firm's investors approved the buyout and will remain invested in the firm's actively managed U.S. and global equity strategies.
ARI managed a total of $3.1 billion as of Aug. 31 of which $2.5 billion was from institutional investors.