NEW YORK and WALTHAM, Mass., Nov.
16, 2021 /PRNewswire/ -- Granahan Investment
Management, Inc. (GIM), a small cap equity investment boutique with
$5.8 billion in assets under
management, and Kudu Investment Management, LLC, a leading provider
of permanent capital solutions to asset and wealth managers, today
announced that Kudu has acquired a minority interest in GIM.
Financial terms were not disclosed.
As part of the new partnership, more than 75% of the equity in
GIM will continue to be held by its employees, broadly distributed
across the firm. In addition, GIM will retain its autonomy over the
operations of the firm.
Founded in 1985, GIM focuses on small cap equity portfolios for
institutional investors across the globe. GIM's suite of offerings
includes U.S. micro, small, SMID, and mid cap strategies, as well
as international and global small cap. The firm serves as
sub-advisor on four unaffiliated mutual funds in the U.S. and
offers a range of Irish-domiciled UCITS funds to non-U.S.
investors.
"We were seeking a partner to support our growth initiatives and
assist with our long-term succession plans," said Jane White, founding partner, president and CEO
of GIM. "Kudu's permanent capital philosophy represents the perfect
solution for us."
"Our culture is grounded in collaboration and performance with
team members who are curious, purposeful investors," said
Drew Beja, CFA, managing director
and portfolio manager of GIM. "Kudu's investment will help us
continue to pursue our mission as we grow."
"Granahan is an exceptional investment management firm with
ambitious plans," said Rob Jakacki,
CEO of Kudu. "As Granahan continues to build out its investments
and client base both in the U.S. and beyond, Kudu's global reach
and broad experience will be a great resource for its expansion
efforts."
Bottom-up stock selection drives the performance of all the
Granahan Investment Management strategies, though each has a
distinct emphasis—secular growth, unrecognized growth, or a sector
bias. GIM's Small Cap Focused Growth, Small Cap Select, SMID
Select, and Small Cap Advantage all rank within the top 5% of
their respective U.S. universes for the five years ending
Sept. 30, 2021, according to
eVestment, a Nasdaq company and a leading provider of institutional
investment data. GIM's flagship Small Cap Core Growth strategy is a
broadly diversified portfolio with a 28-year record that, through
Sept. 30, 2021, has outperformed its
Russell 2000 Growth small cap benchmark by over 5% on an annualized
basis.
Founded in 2015, Kudu now has made minority investments in 18
asset and wealth management firms, including two managed for a
third party. Kudu's portfolio firms collectively invest
approximately $100 billion on behalf
of individual and institutional investors worldwide in traditional
and alternative strategies, as of Sept. 30,
2021. Kudu has more than $650
million in capital commitments to date.
Colchester Partners LLC served as financial advisor and Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C. was the legal counsel
to Granahan. Seward & Kissel LLP served as legal advisor to
Kudu.
About Granahan Investment Management, Inc.
Granahan
Investment Management, Inc. (GIM), founded in 1985, is a small cap
equity specialist with broad employee ownership and $5.8 billion in assets under management as of
today. The firm offers micro cap, small cap, mid cap, and SMID
strategies for institutions and high net worth individuals
worldwide. For more information, visit www.granahan.com.
About Kudu Investment Management, LLC
Kudu provides
long-term capital solutions—including generational ownership
transfers, management buyouts, acquisition and growth finance, as
well as liquidity for legacy partners—to asset and wealth managers
globally. Kudu was founded in 2015 and is backed by capital partner
White Mountains Insurance Group, Ltd. (NYSE: WTM). For more
information, visit https://www.kuduinvestment.com/.
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SOURCE Kudu Investment Management, LLC