Hatteras Funds, a provider of alternative investment solutions for financial advisors, is set to acquire New York-based Alternative Investment Partners (AIP). The agreement, which is set to close next month, will give Hatteras management of AIP’s open-ended mutual funds of hedge fund strategies, known as AIP Mutual Funds.

As part of the deal, Hatteras will acquire two mutual funds of hedge fund strategies, the Alpha Hedged Strategies Fund and the Beta Hedged Strategies Fund. These funds will add $300 million to Hatteras and its affiliated companies’ assets under management, bringing AUM to $1.6 billion.

The new company will operate as the mutual fund division of Hatteras Funds. David B. Perkins, chief executive officer and founder of Hatteras Funds, will become CEO of the newly rebranded company, while Lee Schultheis, CEO and chief investment strategist of AIP Mutual Funds, will serve as president of the division. Mr. Schultheis will continue as a significant shareholder.

“AIP Mutual Funds had a stroke of genius when it created the structure of these funds, which allow a wider range of individuals to access alternatives,” Perkins said. “In a post-Madoff world, these mutual funds of hedge fund strategies are a tool for financial advisors to allocate to alternatives while meeting increasing client demands for liquidity and transparency.”