Brussels-based Fortis Investment Management announced it has taken a 70% stake in New York-based Cadagon Management, combining the two firms’ fund-of-fund operations.

The $3.7 billion business will operate under the Cadagon name and maintain 42 employees with offices in New York and London.  

The deal, terms of which were not made public, will offer Fortis entrée into fund-of-fund arena, which is increasingly popular with large institutional investors, such as pensions, endowments and not-for-profits.

“It gives us real critical mass in an asset class which is increasingly in demand,” said Richard Wohanka, global chief executive of Fortis, in a statement announcing the venture.

“It also provides us with direct access to a significant and focused distribution network for out products in a fast-growing international marketplace,” said Stuart Leaf, chief executive of Cadogan.

Leaf said the company would focus on distribution throughout North America, Europe and Asia.

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