Pugh Capital Management, a Seattle-based fixed-income boutique focused on institutional clients, has acquired a more than $2 billion U.S. high-yield business from SKY Harbor Capital Management.
A Pugh spokeswoman declined to provide financial details about the deal.
Under the deal, SKY Harbor founders Hannah Strasser and Anne Yobage joined Pugh as head of high yield/senior portfolio manager and senior portfolio manager, respectively, together with six additional team members.
The addition of the SKY Harbor professionals increases the total number of investment professionals at Pugh to 22, while its total employee base grows to 38 from 26.
The high-yield team's more than $2 billion in client assets under management raises Pugh's AUM — until now, predominantly in core, core-plus and long-duration strategies — to $13.2 billion.
Mary Pugh, CEO of Pugh Capital, said in a news release that the strategic acquisition "positions the firm to be a broad fixed-income solutions provider.”
A spokesperson for Greenwhich, Conn.-based SKY Harbor couldn't immediately be reached to learn what capabilities remain at the firm with the departure of that firm's founders and its high-yield team.
