Mequon-based investment company Reinhart Partners Inc. has entered into an agreement with Bryn Mawr, Pennsylvania-based Spouting Rock Asset Management that will allow Spouting Rock to acquire a majority stake of Reinhart. Spouting Rock is a multi-boutique manager platform providing investment solutions and services.
Terms of the deal were not disclosed. The multi-step transaction process will take place over a period of two years.
“High-quality, research-driven stock selection is the foundation of the investment philosophy at Reinhart Partners,” said Jim Reinhart, president and chief executive officer of Reinhart Partners. “Marc Brookman and the Spouting Rock family of managers have this same commitment to quality in client service and investment management solutions and we are delighted to join forces as they continue to build out their asset manager platform.”
Reinhart Partners was managing approximately $2.5 billion in client assets as of Nov. 30, 2022. The company’s concentrated portfolios consist of 20-45 small and mid-cap stocks across three flagship strategies: Genesis Private Market Value, Mid Cap Private Market Value and Focused Private Market Value.
Following the acquisition, the existing Reinhart team will join the Spouting Rock platform, and Jim Reinhart will remain in a leadership role. Reinhart Partners will continue to operate as an independent investment manager.
“Spouting Rock is in the midst of a period of strategic expansion as we look to grow our platform of forward-thinking investment solutions,” said Marc Brookman, chief executive officer of Spouting Rock. “Reinhart’s longstanding commitment to client service along with recruiting and retaining a team of talented investment professionals, will be extremely additive to the Spouting Rock platform. We couldn’t be more excited for our next chapter with the Reinhart team.”