Chicago Equity Partners is closing and returning assets to its institutional clientele.
The active manager is in the process of winding down the firm's operations, although a timetable for the firm's closure has not been set, said Daniel Gagnier, a spokesman for the firm.
Chicago Equity Partners publicly announced the move in an April 17 update to its SEC ADV filing noting that "CEP has decided to wind up its operations, including liquidating all private funds. CEP has notified its clients of its decision and provided a description of the process."
Affiliated Managers Group acquired a 60% stake in CEP in October of 2006.
AMG spokesman Jonathan Freedman declined to comment.
Patrick C. Lynch, founding partner and president of Chicago Equity Partners said in statement: "For more than 30 years we've been providing our clients with a range of research-intensive and process-driven solutions. While we continue to have confidence in our process and discipline, we are less confident in today's market structure. As such, we decided the right thing to do for our clients was to return their capital and wind down the business."
The firm's assets under management fell 14.9% to $5.1 billion in the year ended Dec. 31, according to data provided by the firm to Pensions & Investments.
Another Chicago money manager, Mesirow Financial, was quick to hire CEP’s fixed-income team, confirmed Michael Herley, a Mesirow spokesman in an email.
Mesirow is hiring four CEP investment managers, one trader and two client relations specialists whom Mr. Herley declined to identify.
In a news release, Mesirow said the existing Mesirow investment-grade fixed-income team and the former CEP team will manage their portfolios independently.
The Mesirow team managed $3.8 billion as of March 31 and the CEP team managed $3.4 billion as of the same date.