Hatteras Funds announced an agreement to acquire a controlling interest in Alternative Investment Partners, a provider of open-end mutual funds of hedge fund strategies.
Hatteras Funds announced that it had entered into a definitive agreement to acquire a controlling interest in Alternative Investment Partners, LLC (“AIP”), a Harrison, NY-based provider of open-end mutual funds of hedge fund strategies. AIP’s mutual funds, Alpha Hedged Strategies Fund (Ticker: ALPHX) and Beta Hedged Strategies Fund (Ticker: BETAX), managed approximately $300 million in assets as of 6/15/09. The AIP mutual funds employ a multi-manager approach with specialized hedge fund managers acting as sub-advisors to execute alternative investment strategies to invest in an actively-managed liquid portfolio of securities. AIP’s Chief Investment Strategist Lee Schultheis will remain with the company as President, and he and original investor Asset Alliance Corporation will continue as significant shareholders. Terms of the transaction, which is subject to approval of AIP’s fund investors and other customary closing conditions, were not disclosed. Upon completion of the transaction (which is expected to occur in August 2009), Hatteras Funds will have assets under management of approximately $1.6 billion. For more information, read the Hatteras press release.