Terrapin Asset Management, a privately owned hedge fund sponsor, has acquired the hedge fund and private equity fund advisory business of Hennessee Group.

The transaction was initiated at the end of 2012, but was not fully consummated until mid-year 2013 as the firms provided clients with the flexibility and time necessary to transfer their accounts.

According to Terrapin, both the firms will maintain independent operations and remain unaffiliated.

Hennessee provides investment advisory, hedge fund research and portfolio management services to high net worth and institutional clients.

Hennessee will retain the Hennessee Hedge Fund Index, and will continue to publish the Hennessee family of hedge fund indices and the monthly Hennessee Hedge Fund Review Report.

Terrapin said that it will maintain preferred access to the Hennessee Hedge Fund Indices, monthly hedge fund performance press releases, and the Hennessee Hedge Fund Review publication.

Lee Hennessee, managing principal of Hennessee Group, said: "After more than 25 years in the hedge fund advisory business, we made the decision to entrust our client relationships with Terrapin and focus on our research and Hennessee Index products and publications."

Charles Gradante, co-founder of Hennessee, added: "It was time for Hennessee and me to provide our clients with new leadership in the direct-investing advisory business and for us to spend more time on our charitable foundation and philanthropic interests."