RiverFront Investment and Baird have jointly acquired a minority ownership interest as strategic investment partners in the investment firm GAMMA Investing.
Financial terms of the deal and the size of the stake purchased were not disclosed.
Established in 2020 by Lorraine Wang, GAMMA provides a custom index separately managed accounts (SMA) platform that allows advisors to access a range of ‘cost-effective’ custom index solutions.
Commenting on the deal, RiverFront CEO Pete Quinn noted: “Our investment in GAMMA demonstrates our belief that direct indexing is an important piece of the investment management ecosystem for the long-term.
“Partnering with an industry veteran like Lorraine allows us to participate in the projected growth of direct indexing while allowing our investment team to stay focused on managing our existing solutions.”
Baird chairman, president and CEO Steve Booth added: “Lorraine has a well-established reputation, and we are pleased to support her in this venture.
“Her team’s client-focused approach is aligned with ours, and this investment enables us to further expand the high-quality solutions we make available to our financial advisors and their clients.”
GAMMA’s customisable solution is designed to cater to investor needs that exceed equities in income securities and defined outcome strategies.
Wang said: “Our custom index SMA capabilities empower advisors to provide their clients with highly personalised index solutions en masse and an opportunity to potentially increase their after-tax wealth.”
Commenting on the deal, she added: “We are proud to have RiverFront Holdings and Baird as our strategic partners who can help us accelerate growth while staying independent, enabling us to bring innovation that focuses on clients’ differentiated portfolio needs while keeping the cost of implementation low.”
GAMMA’s said that it will establish new board of directors with the majority of its composition consisting of women and minority members.
RiverFront COO Karrie Southall, Baird Wealth Solutions, and Operations executive director Laura Thurow joined the GAMMA board along with investor Yu-Ming Wang, effective 3 January.