Pioneer Investments announced its entry into the separately managed accounts business Wednesday by signing a deal to purchase a minority ownership stake in Oak Ridge Investments, LLC.
The deal also adds a sorely needed growth strategy component to Pioneers investment lineup, which is now dominated by the firms flagship high-yield investment group. "In keeping with our growth strategy, we have entered the separate accounts business through a partnership with a market leader that has a strong investment track record," said Osbert Hood, CEO.
Steven Graziano, executive vice president of strategic marketing, suggested in a public statement that Pioneer intends to keep Oak Ridges moniker intact after the transition is completed. Other separate account providers have made a point of promoting boutique names of newly acquired asset managers as a means of attracting affluent customers.
Terms of the deal were not immediately disclosed.