Ranger Investment Management Consolidates Ownership Interest With Capital From Kudu Investment Management

 

FOR IMMEDIATE RELEASE

 

Ranger Investment Management Consolidates Ownership Interest With Capital From Kudu Investment Management

 

DALLAS, Nov. 18, 2020 – Ranger Investment Management, L.P. (Ranger Investments), a boutique manager specializing in small- and micro-cap U.S. growth strategies, today announced its management is acquiring a controlling interest in the firm previously held by Ranger Capital Group. Kudu Investment Management, LLC (Kudu), an independent provider of permanent capital solutions to asset and wealth managers worldwide, financed the transaction and will have a passive, minority interest in Ranger Investments. Financial terms were not disclosed, and the transaction is subject to customary approvals.

 

Dallas-based Ranger Investments manages approximately $1.6 billion in discretionary and $400 million in non-discretionary assets. Upon closing, Ranger Investments will be led and controlled by its management team. Established in 2003, the firm serves clients including pension funds, endowments, foundations and family offices. It offers two mutual funds—Ranger Small Cap Fund (RFISX) and the Ranger Micro Cap Fund (RFIMX).

 

“This transformative transaction consolidates our management team’s ownership of Ranger Investments and helps ensure long-term and multi-generational stability,” said W. Conrad Doenges, the firm’s chief investment officer. “Each investment team partner now owns a greater personal share in the firm, strengthening our alignment with and commitment to clients.”

 

“Kudu is delighted to partner with Conrad and the firm’s management team,” said Rob Jakacki, Kudu’s CEO. “With a long-term capital commitment from Kudu, we believe a boutique firm like Ranger Investments can produce better outcomes for clients when it has full control of its own destiny.”

 

In addition to Doenges, Ranger Investments’ management committee consists of current principals Andrew Hill, president and portfolio manager; Joseph LaBate, managing director and portfolio manager; and Brown McCullough, director and sector manager. Ranger Investments will retain key back office personnel and operations and administration will continue unchanged through a service agreement with Ranger Capital Group.

 

“We are grateful for the support over the past 17 years from the partners at Ranger Capital. Their willingness to allow the management of Ranger Investments to increase our ownership in the business is a testimony to the working partnership we’ve had,” said Doenges.

 

Winstead PC served as legal advisor to Ranger Investments and Seward & Kissel LLP provided legal counsel to Kudu.

 

 

 

 

ABOUT RANGER INVESTMENT MANAGEMENT

 

Ranger Investment Management, L.P. is a boutique equity investment manager that offers U.S. small- and micro-cap growth strategies. Formed in 2003, Ranger Investments is an SEC-registered investment adviser, owned and controlled by employees. The firm’s strategies aim to preserve and grow capital by utilizing a bottom-up, fundamental research process to identify growing, high quality companies that can be purchased at attractive valuations. For more information, please visit: https://www.rangerinvestments.com.

 

ABOUT KUDU INVESTMENT MANAGEMENT

Kudu Investment Management 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. Kudu was founded in 2015 and is backed by capital partner White Mountains Insurance Group, Ltd. (NYSE: WTM). For more information, please visit Kudu’s website.

Media Contacts

 

For Ranger Investment Management

Conrad Doenges, cdoenges@rangercap.com, (+1) 214 871 5265 (office) (+1) 214 850 3015 (mobile)

Pete Kris, pkris@rangercap.com, (+1) 214 871 5206 (office) (+1) 415 760 0011 (mobile)

 

For Kudu Investment Management

Sarah Lazarus, sarah@cl-media.com, (+1) 617 335 7823

Rich Chimberg, rich@cl-media.com, (+1) 617 312 4281

 

 

Channel Capital Undertakes Management Buyout Supported by Kudu Investment Management

NEW YORK and SYDNEY, Nov. 9, 2020 – Channel Capital Pty Ltd. (Channel), a leading Australian multi-affiliate investment management company servicing more than A$16 billion in assets, will undertake a management buyout from minority equity partner Highbury Partnership (Highbury), subject to customary approvals.

New York-based Kudu Investment Management, LLC (Kudu), an independent provider of permanent capital solutions to asset and wealth managers, is providing financing for the buyout and additional capital for the firm. Upon completion of the transaction, expected in November, Channel’s employee shareholders will control a greater share of the diversified investment management group. Kudu will own a passive, minority share in the business. Financial terms were not disclosed.

Channel provides incubation, operations, distribution, marketing and responsible entity services to a select group of investment management companies and their clients across the institutional, family office, high net worth and advisor-led investor space in Australia and New Zealand. Channel’s subsidiary, Channel Investment Management Limited (CIML), is licensed as a responsible entity in Australia, enabling it to act as both trustee and manager.

“While the business has prospered in partnership with Highbury, we’ve reached the next level of growth, requiring a renewed strategy to both consolidate and capitalize on what we’ve built,” said Glen Holding, Channel’s co-founder and managing director. “Partnering with Kudu will greatly enhance our ability to pursue larger growth opportunities both within and outside of Australia.”

“As our first transaction in Australia, one of the world’s largest pension markets, we jumped at the chance to support Channel in achieving its full potential,” said Charles Ruffel, chairman and managing partner of Kudu. “Channel’s leadership and strong focus on investor outcomes permeate the organization, and we look forward to a long and fruitful working relationship in Australia and globally.”

Established in 2013, Channel has 27 employees across Sydney, Brisbane and Melbourne. Channel currently partners with eight investment management firms. Channel subsidiary CIML provides responsible entity services to a limited set of funds managed or advised by its partner firms as well as a select group of institutions.

With Channel, Kudu will have 14 affiliated firms that collectively manage or advise approximately US$75 billion on behalf of individual and institutional investors worldwide in traditional and alternative strategies, as of Sept. 30, 2020. Kudu, with US$475 million in capital commitments to date, is backed by White Mountains Insurance Group, Ltd. (NYSE: WTM), a financial services holding company.

Berkshire Global Advisors served as financial advisor and Hall and Wilcox served as legal advisor to Channel. Minter Ellison served as legal advisor to Kudu.

 

About Channel Capital

Channel provides incubation, distribution, operational and responsible entity services to a select group of investment management firms and their clients across the institutional, family office, high net worth and advisor-led investor space. Channel’s subsidiary entity, CIML, provides responsible entity services to a limited set of funds. Channel currently services more than A$16 billion in client assets. Learn more here: https://www.channelcapital.com.au.

About Kudu Investment Management

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. Kudu was founded in 2015 and is backed by capital partner White Mountains Insurance Group, Ltd. (NYSE: WTM). For more information, please visit Kudu’s website.

 

Media Contacts

 

For Channel Capital:

Angela Dovitsas

M: +61 417 277 683

angela.dovitsas@chanelcapital.com.au

 

 

For Kudu:

Sarah Lazarus

CL-Media Relations, LLC

M: +1 617-335-7823

sarah@cl-media.com

 

Rich Chimberg

CL-Media Relations, LLC

M: +1 617-312-4281

rich@cl-media.com

 

CC K release 11.9.20 FINAL4