A 26-Year-Old Fixed Income Shop Sells to Shelton
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Wednesday, May 17, 2023

A 26-Year-Old Fixed Income Shop Sells to Shelton

A 38-year-old, $3.4-billion-plus-AUM (as of May 10) fund firm in Colorado is poised to buy a 26-year-old, $500-million-AUM fixed income shop in the Midwest. This will be the acquirer's seventh acquisition.

Stephen Craig "Steve" Rogers
Shelton Capital Management
Last week, Steve Rogers, CEO of Shelton Capital Management [profile], and Andy Holtgrieve, a founding partner and owner of Rockwood Capital Advisors, LLC, revealed that Denver-based Shelton has agreed to buy St. Louis-based Rockwood. Rockwood has a team of five people, and the deal is expected to boost Shelton to 40 people in total.

The deal is expected to close tomorrow. Pricing and terms have not been publicly disclosed.

Rockwood is a separately managed account (SMA) specialist. Unlike Shelton, Rockwood does not currently offer (or subadvise) any mutual funds.

"The Rockwood team joins a very experienced Shelton Fixed Income team and will continue to provide compelling solutions for clients," Mo Shafroth, a spokesperson for Shelton, tells MFWire.

Rogers praises the Rockwood team for their "compelling investment solutions ... great track records, and their client-centric service model."

"Their clients have enjoyed outstanding returns and together, we are well positioned to bring this performance to other institutional clients who often times prefer larger scale," Rogers states. "Twenty years ago, clients would have come running for their performance but in today's market, the first question is about firm size instead of performance and process. This merger helps solve that headwind for Rockwood."

Holtgrive, for his part, lauds Shelton as a "a natural partner" thanks to its "commitment to the fixed income market and corporate culture."

"In today's market, it is necessary to be part of a larger organization because it's no longer enough to just outperform," Holtgrieve states. "With Shelton, we have a comprehensive fixed income platform, robust operational and compliance support, and an institutional caliber sales team."

The deal will bring Shelton its first office in Missouri. The Colorado firm also has offices in California (its prior home state) and Connecticut. And watch for Shelton to continue to acquire.

"Shelton is always looking for growth, whether that's through product launches, fund raises, or acquisitions, and will continue to identify opportunities to synergize and scale efforts in different asset classes," Shafroth says.

Editor's Note: A prior version of this story gave the wrong number of deals for Shelton. To clarify, the new deal will be Shelton's seventh acquisition so far.

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