FS Investments has agreed to acquire New York and Kansas City-based Chiron Investment Management, a boutique investment management firm. No financial terms were disclosed. The deal is expected to close in the first quarter of 2020.
PHILADELPHIA, Dec. 17, 2019 /PRNewswire/ — FS Investments (“FS”), a leading alternative investment manager with more than $24 billion in assets under management, today announced it has entered into an agreement to acquire Chiron Investment Management (“Chiron”), a global multi-asset investment boutique.
Founded in 2015 by industry veterans Ryan Caldwell and Enrico Gaglioti, Chiron employs an active investment approach rooted in quantitative analytics and fundamental research and leverages its expertise in dynamic portfolio construction and asset allocation. Having launched three funds just four years ago, Chiron currently manages approximately $1.8 billion in assets raised across its global distribution platform. Following the close of the transaction, FS will add Chiron’s three funds to its current offerings.
“This is a unique opportunity to diversify our investment management business and expand distribution with a firm that shares our culture, has a high-quality management team and offers a differentiated investment approach,” said Michael Forman, Chairman and Chief Executive Officer of FS Investments. “Together, we will grow our existing fund platforms while helping advisors better serve their clients with forward-thinking, holistic portfolio solutions.”
Following the close of the transaction, Mr. Gaglioti, CEO of Chiron, will join FS in a senior leadership position. Mr. Caldwell, Chief Investment Officer of Chiron, and his team will continue managing all of Chiron’s funds at FS, employing the same investment approach and processes upon which Chiron was founded. Prior to co-founding Chiron, Mr. Gaglioti was a partner at Goldman Sachs & Co., where he served as the Global Head of Equity Sales and as an advisory director of Goldman’s Investment Management Division, among other roles. Mr. Caldwell is well known for his tenure at Waddell & Reed where he co-managed a suite of funds, including the Ivy Asset Strategy, as it grew from $250 million to $40 billion in assets under management.
“Chiron’s deep expertise in multi-asset investing, quantitative and fundamental investment analysis and dynamic portfolio construction complements our industry-leading alternatives business,” added Mike Kelly, President and Chief Investment Officer of FS Investments. “We look forward to working together to further develop model portfolios and other creative investment solutions for our clients.”
Mr. Caldwell said, “I am excited to continue managing the Chiron funds while working with the FS team to develop strategies that help advisors and investors build better portfolios. Going forward, best-in-class asset managers will need to provide solutions that combine differentiated traditional asset management and alternatives. This transaction positions us to be an industry leader in this regard.”
The transaction, which is expected to close in the first quarter of 2020, is subject to customary regulatory approvals and closing conditions, including approval by shareholders of the Chiron funds. Financial terms of the transaction were not disclosed.
About FS Investments
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth, and focuses on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Washington, DC. Visit www.fsinvestments.com to learn more.
About Chiron Investment Management
Chiron Investment Management is a boutique investment management firm, founded in 2015 by CIO Ryan Caldwell, and CEO Enrico Gaglioti. Chiron has an experienced management and advisory team that includes Chairman Marc Spilker and Vice Chairman Scott Prince. In aggregate, the leadership has over 175 years of financial services experience with time-tested track records and success as investors, risk managers and business builders. Chiron’s investment process is an actively managed framework that allows it to quantify fundamental factors, systematize its approach, and apply judgment to asset allocation and security selection. Chiron Investment Management is dually headquartered in New York and Kansas City. For more information, please visit www.chironim.com.