Hatteras Funds to acquire Alternative Investment Partners

Hatteras Funds has entered into an agreement to acquire Alternative Investment Partners LLC, which manages the AIP Mutual Funds.
JUL 10, 2009
Hatteras Funds has entered into an agreement to acquire Alternative Investment Partners LLC, which manages the AIP Mutual Funds. The agreement will give Hatteras, which specializes in alternative investments, its first suite of mutual funds. The acquisition will increase Raleigh, N.C.-based Hatteras Funds and its affiliated companies' assets under management to $1.6 billion and will add two mutual funds using hedge fund strategies — AIP's Alpha Hedged Strategies Fund (ALPHX) and Beta Hedged Strategies Fund (BETAX) — to its family of alternative-investment products. David B. Perkins, chief executive and founder of Hatteras Funds, will become chief executive of Harrison, N.Y.-based Alternative Investment Partners, which will be rebranded under the Hatteras umbrella and operate as its mutual fund division, according to a statement released yesterday Hatteras. “AIP Mutual Funds is an ideal fit,” he said in the statement. “The products are a natural extension of our current offerings and allow us to bring financial professionals a needed option for their clients' portfolio diversification: an alternative investment solution through a mutual fund with daily liquidity.” Lee Schultheis, the chief executive and chief investment strategist of AIP Mutual Funds, will remain with the company as president of the mutual fund division. “The benefits of partnering with Hatteras to the AIP Mutual Funds' investors will be significant,” he said in the statement. “Hatteras brings expertise in alternative investment management, administrative, client service and operational excellence to our investors that will enhance the investment process and has the potential to deliver value for years to come.” The transaction is expected to close in August and is subject to AIP Funds investor approval, regulatory filings and other customary closing conditions. Terms weren't disclosed.

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