Even as Manning & Napier prepares to buy a majority of Rainier Investment Management [profile], another mutual fund shop is swooping in to buy a piece.

Sreeni Prabhu Angel Oak Capital Advisors Managing Partner, Co-CEO, Chief Investment Officer

Yesterday Sreeni Prabhu, co-CEO and chief investment officer of Atlanta-based Angel Oak Capital Advisors [profile], unveiled a deal to adopt the four-star, $38.5-million Rainier High Yield Fund. Jim Hentges and Matt Kennedy, who have PMed the fund since it launched in 2009, will join Angel Oak as senior PMs based in Seattle.

A spokeswoman for Manning declined to comment on the deal. In December Fairport, New York-based Manning unveiled a deal to buy 75 percent of Seattle-based Rainier this quarter. At the time, Manning CEO Patrick Cunningham said that he didn't plan to make any "changes to either firm's investment personnel or processes."

Meanwhile, the Angel Oak deal will transform the Rainier High Yield Fund into the new Angel Oak High Yield Opportunities Fund.

David Silvera, director of corporate development at Angel Oak, states that the Rainier deal "signals the next step in the evolution of Angel Oak's business and product development."

"We are expanding the way we serve clients through adjacent product development," Silvera states.

Angel Oak had about $5.5 billion in AUM as of March 31. 

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