A Minneapolis-based soon-to-be fund shop has sold itself, in a bid to transition to new leadership.
Neal St. Anthony of the Star-Tribune reports
that the British firm Northill Capital
is buying a majority stake in Minneapolis-based Riverbridge Partners
, a private investment company that is getting set to launch its first mutual fund in January.
Riverbridge is a 25-year-old company with 28 employees and about $4 billion in AUM. The founder, John Peyton
, and several other principles are retiring, and the sale is a bid to transition control of the company to the next generation.
The mutual fund that Riverbridge plans to launch will be a version of its all-cap growth strategy.
Riverbridge "is the fifth of about ten investment boutiques in which Northill is investing to build a diversified portfolio of well-managed, high-quality investment businesses," St. Anthony writes.
Riverbridge founder and chairman Mark Thomson
told the paper that the sale is a way to let the retiring partners cash out and younger partners buy in.
"Many firms never solve this problem, which is why they are either sold or … collapse when the founder departs," said Thomson.
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