Affiliated Managers Group (AMG) has taken a minority stake in Verition Fund Management, one of the hedge fund industry’s fastest-growing multi-strategy managers, according to a report by Bloomberg citing an internal statement confirming a ‘definitive agreement’ between the two firms.
The deal gives AMG a foothold in a $12.6bn firm that’s scaled rapidly from just $1 billion in 2018. Verition’s co-founders, Nicholas Maounis and Josh Goldstein, will retain full operational control and remain heavily invested in the firm’s future, making a significant additional investment alongside AMG. Financial terms of the transaction, expected to close in Q2, have not been disclosed.
“This capital will enable us to accelerate investment in technology, infrastructure, and the continued expansion of our global team,” Maounis and Goldstein told staff in a memo. Verition, which runs capital across roughly 150 trading pods, has never posted an annual loss and has delivered annualised returns of approximately 13% since inception. The firm posted a 1.5% gain in Q1 2025.
Multi-strategy funds have surged in both assets and prominence in recent years. According to Goldman Sachs, the space grew to $366bn in AUM as of June 2023, up from $134bn in 2017. Their appeal lies in the consistency of returns and the ability to charge premium fees – an attractive revenue profile for buyers like AMG, which earns a share of underlying fees while remaining operationally hands-off.
AMG CEO Jay Horgen said Verition’s “exceptional growth and long-term potential” made it an ideal partner for the firm’s strategy of acquiring stakes in best-in-class managers. Previous AMG partnerships include AQR, Capula, Systematica, ValueAct, and Winton.
Verition’s founders emphasized that the firm’s investment philosophy and operational independence remain unchanged. “AMG will not participate in investment decisions, and their involvement will not impact how we operate or manage capital,” Maounis said in a memo to staff.
