The rampant market-timing at Pilgrim Baxter & Associates that spurred regulatory action from New York Attorney General Eliot Spitzer and the SEC was motivated by a drive to raise assets and attract a buyer, according to next week’s edition of Fortune.

Gary Pilgrim and Harold Baxter, an unlikely duo who joined forces to launch Pilgrim in 1982, reportedly kicked themselves for selling out to United Asset Management for $135 million in 1995 when peer boutique firms fetched much larger prices. Pilgrim and Baxter, who had since adopted lavish lifestyles, doled out generous bonuses to themselves and employed numerous tactics aimed at wresting additional income from the firm, according to the expose.

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