Wells Fargo Asset Management (WFAM) has purchased a minority ownership stake in Washington based privately held alternative asset manager The Rock Creek Group (Rock Creek), for an undisclosed sum.
Managing nearly $7bn in assets under management (AUM), the acquired enterprise offers a mixture of tailored multi-manager alternatives and long-only investment solutions to institutional clients.
Following the acquisition of minority stake, there will be no adjustment in 50 member Rock Creek team, investment philosophy or process, team and investment committee composition, or location, while all daily management will reside with the current Rock Creek team, led by Beschloss.
As per terms of the deal, WFAM may purchase additional ownership interests in Rock Creek through long-term put and call arrangements in succeeding years, subject to customary conditions.
Lazard acted as financial advisor to Rock Creek on the transaction and Sullivan & Cromwell and K&L Gates served as legal counsel to Rock Creek and WFAM, respectively.
Founded in 2002, Rock Creek also offers fund of hedge funds and emerging market portfolios through top-down asset allocation and manager selection, using analytics platform Rock Creek Solutions.
As of 30 September 2012, WFAM had over $450bn in assets under management and manages over 35 autonomous investment teams; 1,700 dedicated team members, including more than 500 investment professionals.