Adds Proven Investment Team to Offer Clients Broader Set of Solutions; Expands Distribution
PHILADELPHIA, December 17, 2019 — 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 CEO 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.