Virtus Investment Partners, which operates a multi-boutique asset management business, is to acquire AlphaSimplex Group, LLC, a manager of liquid alternative investment solutions with $10.9 billion of assets under management, from Natixis Investment Managers.
AlphaSimplex is a provider of systematic alternative investment solutions for institutional and individual clients. Its offerings are designed to adapt to changing market dynamics and provide the potential for positive, uncorrelated investment returns even through the market’s most challenging periods. Among its strategies is its flagship trend-following managed futures strategy offered via the 5-Star Morningstar Rated $3.5 billion AlphaSimplex Managed Futures Strategy Fund (ASFYX), which is the third-largest US mutual fund in its category.
As a boutique affiliate of Virtus, AlphaSimplex will maintain autonomy over its investment processes, brand, and culture, with no changes to the investment strategies or the management or investing teams, ensuring continuity for its clients and distribution partners. AlphaSimplex will benefit from Virtus’ strong retail and institutional marketing and distribution capabilities to expand its presence in the US retail, institutional and subadvisory channels as well as non-US markets, shared business support services model, and product development capabilities.
Virtus will acquire 100% of AlphaSimplex from Natixis Investment Managers and it will seek to adopt the two US mutual funds and, subject to regulatory approval, a Luxembourg-domiciled UCITS fund, that are managed by AlphaSimplex. The terms of the transaction were not disclosed. Virtus expects to fund the transaction with existing financial resources. The transaction is expected to close near the end of the first quarter of 2023, subject to customary closing conditions, necessary regulatory approvals, and approvals by the mutual fund boards and fund shareholders.
Piper Sandler & Co acted as financial advisor and Morgan Lewis & Bockius LLP was the legal advisor to Virtus on the transaction. RBC Capital Markets, LLC acted as financial advisor and Ropes & Gray LLP was the legal advisor to Natixis Investment Managers.
