Spouting Rock Asset Management has taken an unspecified majority stake in fixed-income and equities manager Penn Capital Management.
The transaction is expected to close in the first quarter of 2021, at which point Penn Capital employees will own the remainder of the firm's equity, a news release Thursday from Spouting Rock said.
The value of the all-cash deal was not disclosed, Spouting Rock CEO Andrew Smith said in an email.
Richard A. Hocker, Penn Capital CEO, founder and chairman, plans to step down as chief of the money manager but will remain an employee at the firm, Mr. Smith said.
Additionally, senior partner Kirsten Hocker, who is chief administrative officer, director of philanthropy and diversity at Penn Capital, will become president of the firm, Mr. Smith added. Mr. Smith will take on an executive role at Penn Capital, he said, but he did not provide further information on the title.
Spouting Rock is a Bryn Mawr, Pa.-based multiboutique manager providing alternative, traditional, and thematic investment solutions and services, according to a separate news release from Philadelphia-based Penn Capital.
Penn Capital was founded in 1987 by Mr. Hocker, who is a principal owner of the firm along with Marcia A. Hocker, according to the firm's most recent ADV filed with the SEC.
Penn Capital had $2.7 billion in assets under management, while Spouting Rock managed $691 million, both as of Sept. 30. Both firms manage mostly institutional assets, Mr. Smith said in the email.
