Alternative investments shop 361 Capital plans to acquire BRC Investment Management, which provides separately managed account strategies primarily for institutional investors. The deal is 361’s first acquisition and first foray into the long-only space; it nearly doubles the firm’s assets under management from $1.3 billion to $2.1 billion.
Greenwood Village, Colo.–based BRC is a quantitative shop focused on behavioral investment management and is similar to 361 in that respect. But BRC’s strategies are long-only, a new area for the alts shop. Tom Florence, president and CEO of 361 Capital, says the firm has filed a new mutual fund registration with the Securities and Exchange Commission based on BRC’s small-cap equities strategy, which has a eight-year track record.
The firm will be able to distribute the new fund to advisors. BRC’s other strategies will remain institutional-only, for now.
“They’ve got a great 20-year history, but they really haven’t had much in the way of distribution or sales and marketing,” Florence said. “So it gives us a chance to expose them to our client base and the market in general.”
Florence said his firm also plans to distribute its existing products to BRC’s institutional clients. 361 offers five alternative mutual funds, including the 361 Capital Long/Short Equity Fund, the 361 Capital Global Counter-Trend Fund and the 361 Capital Managed Futures Strategy Fund.
361 Capital is a WealthManagement.com 2016 Industry Award winner for its long/short equity initiative.