Virtus Investment Partners Announces Agreement to Acquire Westchester Capital Management
Posted on 02/02/2021
Virtus Investment Partners, Inc. (NASDAQ: VRTS), which operates a multi-boutique asset management business, announced it has entered into a definitive agreement to acquire Westchester Capital Management, a manager of global event-driven investment strategies with approximately US$ 4.3 billion of assets under management as of December 31, 2020, including US$ 3.6 billion in The Merger Fund, which was launched in 1989. The sales price was US$ 135 million. Under the agreement, Virtus would purchase all of the equity of Westchester Capital. Managing partners and portfolio managers, Roy Behren and Michael Shannon, have entered into long-term employment agreements and are reinvesting a significant portion of the transaction proceeds into the firm’s investment strategies.
The transaction is expected to close in the second half of the year, subject to customary closing conditions and approvals by each fund’s board and shareholders.
Advisors
UBS acted as financial advisor and Goodwin Procter LLP was the legal advisor to Virtus on the transaction. Piper Sandler & Co. acted as financial advisor and Berkowitz, Trager & Trager, LLC and Morgan, Lewis & Bockius LLP were the legal advisors to Westchester Capital Management and its shareholders.
Lincoln Peak Capital is a private strategic equity partner for boutique asset management firms, providing capital and expertise to help firms realize their long-term potential.
The Merger Fund is distributed by Compass Distributors, LLC, which is not affiliated with the advisor or any of its affiliates.
2010
Lincoln Peak Capitalhad acquired a minority investment in Westchester Capital Management, LLC, the successor entity to Westchester Capital Management, Inc. Westchester then managed approximately $4 billion in assets from December 2010. Lincoln Peak Capital had acquired its minority investment in connection with helping Westchester’s current management team purchase their company from its retired founder.