Religare Enterprises is moving forward with its plans to build a family of boutique asset management firms following its purchase of a second U.S. private equity firm.
The Indian holding company, headed by industrialist Malvinder Singh and his family, hopes to add a hedge fund manager or two—as well as one of more long-only managers. The firm, which has $1 billion to spend, last week bought a majority stake in Connecticut p.e. firm Landmark Partners, and in February took a majority stake in another p.e. firm, Northgate Capital.
"Now that we have built a strong position in the less-liquid side of alternatives with Northgate and Landmark, we're very interested in the liquid side of alternatives, including hedge funds of funds and single-strategy hedge funds as well as traditional long-only and fixed-income firms," Religare Global Asset Management's Matthew Mongia told Dow Jones Newswires.
Religare bought a 55% stake in Landmark, which has more than $8.3 billion in capital commitments, for $171.5 million. It owns 60% of Northgate, which is based in California. Religare plans to leave the management teams of both firms in place.
"We are never going to buy 100% of a manager," Mongia said. "We will buy control of the firm, but leave behind a meaningful equity in the hands of the firm's management team, so there will be significant alignment of interest."