After failing to find a buyer this year, Resolute Investment Managers, a multibrand financial advisory firm owned by Kelso & Co and Estancia, has announced that it will exercise its option to take majority control of ARK Investment Management. This move is not supported by ARK's founder and CEO, Cathie Wood.
ARK Investment Management LLC (“ARK”), a New York-based investment adviser focused on investing in disruptive innovation, and Resolute have had a tumultuous relationship over the past few years. In 2016, Resolute acquired a minority investment in ARK, but the two companies have since had disagreements over the direction of the firm.
In 2019, Resolute attempted to purchase a majority stake in ARK, but the deal fell through. Then, earlier this year, ARK and Resolute came to a new agreement that would have ended in Resolute taking control of ARK. However, that deal has now been abandoned.
Instead, Resolute has announced that it will exercise its option to take control of ARK. This move is not supported by ARK's founder and CEO, Cathie Wood, who has built a reputation as one of Wall Street's most successful and innovative investors.
Resolute Investment Managers, which has over $12 billion in assets under management, is known for its multibrand approach to financial advisory services. The firm has a number of different brands, including Resolute Capital Partners, which provides structured capital solutions to lower middle market companies.
The move by Resolute to take control of ARK is seen as a bold move by the firm, which is looking to expand its presence in the financial advisory space. However, the move is also controversial, as many in the industry see ARK as a leader in the field of disruptive innovation.
ARK Investment Management has become one of the most successful investment firms in recent years, with a focus on investing in companies that are disrupting traditional industries. The firm's flagship fund, the ARK Innovation ETF (ARKK), has returned over 400% over the past five years, making it one of the top-performing funds in the industry.
The move by Resolute to take control of ARK is likely to have significant implications for both firms. It remains to be seen how the two companies will work together under Resolute's majority control.
The news of Resolute's move to take control of ARK comes just weeks after American Beacon Advisors completed its majority purchase of Shapiro Capital Management, LLC. This is another example of the consolidation that is taking place in the financial advisory space, as larger firms look to acquire smaller firms to expand their reach.
In conclusion, Resolute Investment Managers' decision to take majority control of ARK Investment Management is a bold move that is likely to have significant implications for both firms. While Resolute is looking to expand its presence in the financial advisory space, ARK has built a reputation as a leader in the field of disruptive innovation. It remains to be seen how the two companies will work together under Resolute's majority control.