Virtus expanding manager stable with Westchester acquisition
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Virtus Investment Partners entered into an agreement to acquire global event-driven money manager Westchester Capital Management.
The agreement calls for Virtus to acquire the firm for $135 million at closing, with a potential for future payments based on revenue and growth, said Virtus spokesman Joe Fazzino. Westchester Capital is currently owned by the principals of the firm, and Lincoln Peak Capital owns a minority stake in the firm as well, Mr. Fazzino said.
The deal is expected to close in the second half of 2021, he said.
The firm will join Virtus Investment Partners’ group of affiliated boutique money managers. Roy Behren and Michael Shannon, Westchester’s managing partners and portfolio managers, agreed to long-term employment and are “reinvesting a significant portion of the transaction proceeds into the firm’s investment strategies,” according to the release.