US-based multi-boutique manager Spouting Rock Asset Management has agreed to take majority ownership in alternative asset manager Old Hill Partners.
The financial terms of the deal and the size of the stake were not disclosed.
Old Hill specialises in asset-based lending transactions with small- and medium-sized businesses (SMBs).
In concurrent with the transaction, Spouting Rock established a new subsidiary, called Spouting Rock Alternative Credit (SR Alternative Credit), to house the asset-based lending business of Old Hill.
The unit, which will be led by ex-Old Hill employees Jeff Haas and Peter Faigl, aims to pin down ‘opportunities for risk-adjusted returns in private debt well in excess of those available to traditional credit investors’.
In addition, it will act as the investment advisor to Old Hill’s current funds and other investment vehicles.
The purchase of Old Hill is expected to help Spouting Rock bolster its platform and better serve clients’ existing portfolio requirements.
Spouting Rock Asset Management chief executive Andrew Smith said: “Old Hill has created a unique opportunity for investors striving to generate income in private debt transactions.
“The senior portfolio management team brings over 20 years of experience sourcing and constructing transactions. We look forward to leveraging their expertise to expand upon the credit offerings available on the Spouting Rock platform.”
Commenting on the deal, Jeff Haas added: “Spouting Rock’s shared services model will allow us to expand our business further in 2022 and beyond.
“We’re excited to join the growing Spouting Rock family and to continue to create attractive outcomes for investors and borrowers alike.”
Spouting Rock Asset Management was set up in 2018 by American diversified financial services firm Spouting Rock Financial Partners.