Denver-based ALPS, which provides several outsourcing services to mutual fund firms, says it plans to acquire Red Rocks Capital, a private equity asset manager, for $65 million. The deal is expected to close in the second half of 2015.
Ned Burke, CEO of ALPS Holdings, hopes the acquisition will give the firm an edge in alternative investments.
Red Rocks, which manages and advises $1.8 billion in assets, specializes in listed private equity products and other private asset investments, including mutual funds, sub-advised relationships, separately managed accounts and select variable annuity contracts. The firm sub-advises the ALPS|Red Rocks Listed Private Equity Fund, launched in 2007.
Red Rocks has also created the Red Rocks Global Listed Private Equity Index, a benchmark for private equity firms that are publicly traded.
The firm was founded in 2003 by Adam Goldman and Mark Sunderhouse, who are both expected to stay on as co-managers for the Red Rocks strategy.