Diffractive Managers Group, a multi- boutique asset management firm owned by 1251 Capital Group, has reached a deal to buy its peer F/m Acceleration for an undisclosed sum.
Based in Washington, DC, F/m Acceleration offers institutional-grade investment tools as well as business operations and compliance support to asset managers across the US and beyond.
The merged entity will have nine boutique asset management firms, catering to various institutional and retail investors along with financial advisors.
Diffractive will manage $23bn in assets following the completion of the deal, which is yet to receive necessary client approvals.
F/m Acceleration CEO David Littleton will become the president of Diffractive, while the firm’s president and CIO Alexander Morris will join Diffractive as COO and as CIO of F/m Investments, once the deal is finalised.
Diffractive chairman John Hailer will continue to work as the chairman of the merged entity.
Hailer said: “The acquisition of F/m by Diffractive will bring together complementary skill sets and resources allowing us to augment our centralized distribution capabilities with F/m’s proven expertise at delivering innovative new product structures and back-office efficiencies while setting up scalable operations.
“These expanded capabilities and increased range of products will enable us and our investment partners to win in an increasingly competitive investment arena.”
Diffractive currently has equity stakes in various boutique asset management companies such as Emerald Asset Management, Greenbacker Capital Management, Gitterman Asset Management, among others.
The company came into existence in November last year after 1251 Capital Group rebranded its multi- affiliate holding firm 1251 Asset Management to Diffractive.