New York Life Insurance Co. has acquired a majority stake in Private Advisors, a Richmond, Va.-based firm with more than $3.5 billion in assets under management.
The deal does not yet seem to have been publicly announced, but Fortune has obtained a letter sent earlier by Private Advisors to its clients. It reads, in part:
We believe that our platform, including our range of investment capabilities, our well-resourced and experienced investment teams, and our robust infrastructure is compelling relative to many alternative investment management firms. New York Life Investments’ interest in Private Advisors is a testament to the strength of our investment capabilities, our professionals and our high-quality investor base. Furthermore,we believe that our decision to enter this alliance clearly demonstrates our commitment to the future successof our business and of our investors.
We believe that our platform, including our range of investment capabilities, our well-resourced and experienced investment teams, and our robust infrastructure is compelling relative to many alternative investment management firms. New York Life Investments’ interest in Private Advisors is a testament to the strength of our investment capabilities, our professionals and our high-quality investor base. Furthermore,we believe that our decision to enter this alliance clearly demonstrates our commitment to the future successof our business and of our investors.
[Update: There is now a press release]
The deal is for a 60% stake at closing, after which New York Life — via its New York Life Investments subsidiary — will acquire additional 20% stakes at three times over the next seven years. No financial terms were disclosed.
Virginia-based Private Advisors manages a series of private equity, venture capital, hedge and arbitrage funds-of-funds. It experienced a bit of management shake-up earlier this year, when firm co-founder Rafael Astruc resigned suddenly. No explanation was ever given for the move, due to confidentiality clauses in the separation agreement.
Here is the entire letter:
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