Crestline acquires parts of Northwater Capital Management FoHFs

Crestline Investors has acquired certain assets related to Northwater Capital Management's fund of hedge funds (FoHFs) and beta overlay investment management businesses.

Financial details of the transaction were not disclosed.

The acquisition is expected to be effective October 1, 2009.

As part of the transaction Crestline will establish an affiliate office in Toronto to serve existing and acquired Canadian client accounts and build additional relationships within the Canadian investment community.

Paul Robson, former president of Northwater, will lead Crestline's Canadian business as president of Crestline Canada. Robson is one of six professionals joining Crestline to transition and continue management of the client accounts which are managed on behalf of corporate and public pension plans, multi-employer plans, charitable foundations and university endowments.

The acquisition increases Crestline's total assets under management to around $5.8 billion. The acquisition includes $683 million of Northwater client FoHFs assets bringing total Crestline FoHF assets to $4.3 billion plus $1.5 billion of Northwater client beta overlay investment management business.

Jefferies & Company was the exclusive financial advisor to this transaction.

Crestline Investors is an institutional alternative investment manager based in Fort Worth, Texas. It manages a family of diversified FoHFs and specialises in low volatility and opportunistic hedge fund strategies.

Northwater Capital Management is an employee-owned investment company with offices in Toronto, New York and Chicago.