Alger Associates Inc. agreed to acquire Weatherbie Capital LLC, a specialized growth equity manager with more than $800 million in assets under management.
Weatherbie Capital founder Matthew Weatherbie will remain CEO and become co-chief investment officer of the company, which will become a wholly owned subsidiary of Alger at the transaction's closing. There will be no changes to Weatherbie Capital's investment process, which is mainly focused on the sectors of consumer, healthcare, diversified business services, media and communications, information services and technology.
The board of certain mutual funds Alger advises approved Weatherbie Capital assuming certain portfolio management responsibility for two of Alger's strategies upon the deal's completion. This will bring incremental assets to both the Weatherbie Capital Specialized Growth strategy and the Weatherbie Capital Long/Short strategy. Alger expects the added assets will bring Weatherbie Capital's assets to more than $1 billion, upon transition to Weatherbie Capital.
The transaction is expected to close in early March.
K&L Gates represented Weatherbie Capital in the transaction. Seward & Kissel represented Alger, while Westwood Partners assisted the company.
Alger Associates is the parent company of Fred Alger Management Inc.