FS Investments, an alternative investment manager with more than $24 billion in assets under management, has agreed to purchase Chiron Investment Management, a global multi-asset investment boutique. The transaction is expected to close in the first quarter of 2020, and financial terms were not disclosed.
Founded in 2015 by industry veterans Ryan Caldwell and Enrico Gaglioti, Chiron has launched three funds and currently manages approximately $1.8 billion in assets raised across its global distribution platform.
Chiron sponsors three mutual funds including the Chiron Capital Allocation Fund (CCAPX), Chiron SMid Opportunities Fund (CSMOX), and Chiron Global Opportunities Fund (UCITS). Following the close of the transaction, FS Investments will add the three funds to its current offerings.
“This is a unique opportunity to diversify our investment management business and expand distribution with a firm that shares our culture, has a high-quality management team and offers a differentiated investment approach,” said Michael Forman, chairman and chief executive officer of FS Investments.
Following the close of the transaction, Gaglioti, CEO of Chiron, will join FS in a senior leadership position. Caldwell, chief investment officer of Chiron, and his team will continue managing all of Chiron’s funds at FS Investments.
Prior to co-founding Chiron, Gaglioti was a partner at Goldman Sachs & Co., where he served as the global head of equity sales and as an advisory director of Goldman’s investment management division, among other roles.
Caldwell is well known for his tenure at Waddell & Reed where he co-managed a suite of funds, including the Ivy Asset Strategy, as it grew from $250 million to $40 billion in assets under management, the company said.
FS Investments sponsors a number of non-traded alternative investment programs including FS Credit Real Estate Income Trust (a NAV REIT), Credit Income Fund and FS Energy Total Return Fund (interval funds); FS Multi-Strategy Alternatives (mutual fund), and four closed non-traded business development companies. FS Investments is headquartered in Philadelphia, with offices in New York City, Orlando, and Washington, DC.