Alternative investments shop 361 Capital 'diversifies' into long-only management

In a move that goes against the grain of the broader asset management industry, alternative investments shop 361 Capital announced Tuesday plans to acquire long-only manager BRC Investment Management. 361 Capital has already filed to launch a small-cap equity mutual fund that will be managed by the BRC team that has been managing the strategy for eight years. The new fund, will join the 361 Capital family of five alternative-strategy mutual funds, totaling $1.3 billion. BRC manages $800 million in separately managed accounts, mostly for institutional investors. Tom Florence, president and chief executive of 361 Capital, said the equity deal between the two private companies will leverage 361 Capital's distribution capabilities and BRC's access to institutional investors. “Our product lineup to date has been alternative investments, so this is diversification for us,” he said. The deal is scheduled to close by Oct. 31, after which the firms will combine under the 361 Capital name.