Spouting Rock Asset Management agreed to acquire a majority stake in investment manager Reinhart Partners in a multistep transaction over a period of two years.
Based in Milwaukee, Reinhart Partners offers a range of private market value equity strategies to individual and institutional clients, according to a news release Tuesday.
Reinhart had about $2.5 billion in assets under management as of Nov. 30.
Subject to customary conditions, the first step of the transaction is expected to close in the first quarter of this year, the news release said.
After the transactions are complete, Reinhart Partners will continue to operate as an independent investment manager.
A Spouting Rock spokeswoman said in an email that "details of the deal remain private."
James Reinhart, who founded Reinhart Partners in 1991 and serves as its president and CEO, will remain in a "leadership role" at the firm following the acquisition, the release said.
The spokeswoman added: "Jim will remain president and CEO of Reinhart. The Reinhart team will not be (Spouting Rock) employees, they will be a manager available through the (Spouting Rock) platform."
"Spouting Rock is in the midst of a period of strategic expansion as we look to grow our platform of forward-thinking investment solutions," said Marc Brookman, CEO of Spouting Rock, in the release. "We think now is a great time to acquire stakes in boutique alpha-generating managers like Reinhart, despite the challenging market environment."
On Dec. 13, Spouting Rock agreed to acquire growth stock investor Stewart Asset Management.
Based in Bryn Mawr, Pa., Spouting Rock had $3.1 billion in AUM as of March 31.
