Estancia buys minority stake in Redwood Investments

Estancia Capital Management said Wednesday that it has acquired a minority non-controlling interest Redwood Investments LLC. Financial terms weren’t announced. Newton, Massachusetts-based Redwood is an investment management boutique, specializing in managing Large and Small Capitalization Equity portfolios.


SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Estancia Capital Partners, L.P. (“Estancia”), a leading private equity fund focused exclusively on Asset and Wealth Management firms and related Business Services companies, announced that they have acquired a minority non-controlling interest in Newton, Mass.-based Redwood Investments, LLC (“Redwood”). Redwood is an independent investment management boutique, specializing in managing Large and Small Capitalization Equity portfolios for public and private pension and retirement plans, foundations, endowments and private clients. Redwood also offers Sustainable Investing strategies incorporating environmental, social and corporate governance (ESG) factors. Terms of the transaction were not disclosed.

Michael Mendez, Managing Director at Estancia, commented, “We were attracted to the ‘Institutional Quality’ of Redwood’s investment team and process. The firm’s distinct culture and history of delivering top quartile peer group relative performance are exceptional. We will continue to support a shared vision of building an investment firm focused on fundamental research informed by proprietary quantitative tools and excellent client service/portfolio management. Through the Fund’s growth capital investment, Estancia looks forward to assisting Redwood with the company’s continued development and resourcing plan.”
Jennifer Silver, a Redwood Co-Founder and Managing Partner, stated, “Importantly, Redwood will continue to operate independently and under the leadership of the existing management team that will continue to own a majority equity stake in our business. We look forward to working with the Estancia principals, as they are industry veterans with significant experience in providing strategic support post investment.”
“We are excited about the strategic partnership with Estancia,” added Michael Mufson, a Redwood Co-Founder and Managing Partner. “Estancia represents a significantly different partner than traditional financial investors. They are operationally and distribution-oriented industry specialists focused on investing in boutique asset management firms. Our ability to leverage Estancia’s experience, industry network and past successes is without question in the best interests of our clients.”
About Redwood Investments, LLC
Founded in 2004 by Jennifer Silver and Michael Mufson, Redwood Investments, LLC includes a senior portfolio management team of highly successful and respected investment managers possessing more than 100 years of collective experience. Through innovative idea-generation, a collaborative atmosphere and a disciplined investment process, the company delivers sophisticated investment management expertise. Redwood currently manages approximately $1 billion of client assets on behalf of institutional and private clients.
About Estancia
Estancia is a private equity firm focused on small to lower middle market investments in Institutional Quality Asset Management, Wealth Management and related Business Services companies. The Principals – Messrs. Mendez, Moriuchi, Kang, Jeffries and Kurttila – have a history of partnering with management and investment teams in providing equity, growth and working capital to facilitate strategic and opportunistic development of portfolio companies, including management buy-outs from larger financial firms, private ownership/succession transitions, growth initiatives and investment team lift-outs. Estancia is currently investing its first institutional fund, Estancia Capital Partners, L.P., on behalf of a diversified base of over 40 Limited Partners.