American Beacon Advisors has entered into an agreement with Cypress Capital Group to purchase majority stake of Crest Investment Partners for an undisclosed amount.
Crest, which was established in September 2011, is an independent investment advisory firm. It provides quantitative, fundamentally-driven investment solutions to institutional and individual clients.
Crest, in addition to separately managed accounts, provides the quantitative engine behind the SmartALPHA Strategy Indexes, a suite of four rules-based alpha-seeking equity strategy indices.
Subject to customary closing conditions, the deal is expected to close within the next 60 days.
American Beacon president and CEO Gene Needles Jr. said: “Crest’s disciplined, repeatable and transparent investment process aligns perfectly with our objective to combine undiscovered asset managers with our industry leading distribution capabilities.
“Their investment strategies are highly complementary to our existing products and provide us with another growth opportunity for the firm.”
Crest cofounder and chief investment officer Massimo Santicchia said: “We are excited to be able to combine our active, proprietary strategies with American Beacon’s established roots with retail and institutional investors.
“It is also gratifying to be one of the first independent investment subsidiaries to be included in American Beacon’s growing multiaffiliate platform.”
Recently, American Beacon closed the acquisition of a minority stake in ARK Investment Management, a New York-based federally registered investment adviser.