Franklin Templeton Investments has agreed to acquire AlphaParity, a macro-focused quantitative investment firm, for an undisclosed amount.
Incorporated in 2012 by Steve Gross and Joshua Smith, AlphaParity offers Global Premia and Negative Correlation investment strategies to institutional clients. As of 31 December 2016, the company manages $500m, and employees 11 professionals based in New York and London.
Under the deal, AlphaParity’s team will join Franklin Templeton Solutions platform.
Subject to standard closing conditions, the transaction is expected to be completed later in February 2017.
Franklin Templeton Alternative Strategies executive vice president William Yun said: “AlphaParity’s quantitative approach to asset allocation, focusing on both fundamental and technical analysis, and ability to create its own risk premia strategies fits well with Franklin Templeton’s existing industry-leading risk premia research efforts.
“As factor investing has evolved, we believe AlphaParity’s unique approach to exploiting these factors in an efficient way can lead to better outcomes for our clients. We look forward to leveraging AlphaParity’s innovative portfolio solutions and analytics to provide our global institutional and retail client base with unique diversification, absolute return and hedging solutions.”
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AlphaParity founder and chief investment officer Steve Gross said: “Joining Franklin Templeton, a leading global asset management firm with a world class investment platform, advances our long-term mission to deliver next generation portfolio solutions to investors.
“We look forward to partnering with Franklin Templeton and its strong product development teams, well-established global distribution networks and deep institutional relationships, to maximize our capabilities and realize our vision.”