Multi-Boutique Asset Management Firm Diffractive Managers Group to Acquire F/m Acceleration

Combination Will Bring Together Two Leading Multi-Boutique Asset Management Firms, Expanding Scale, Product Offerings and Investment Solutions

Combined Entity Includes Nine Boutique Asset Management Firms Serving Institutional and Retail Investors and Financial Advisors

BOSTON and WASHINGTON, Dec. 20, 2022 /PRNewswire/ -- Diffractive Managers Group, the multi-affiliate asset manager and centralized distribution platform launched by 1251 Capital Group, today announced plans to acquire F/m Acceleration LLC, which provides US-based and overseas asset managers with institutional-grade investment systems, business operations and compliance support. Following the acquisition, which is subject to requisite client consents, Diffractive will have $23 billion in assets under management across nine affiliated investment boutiques.

"The acquisition of F/m by Diffractive will bring together complementary skill sets and resources allowing us to augment our centralized distribution capabilities with F/m's proven expertise at delivering innovative new product structures and back-office efficiencies while setting up scalable operations. These expanded capabilities and increased range of products will enable us and our investment partners to win in an increasingly competitive investment arena," said John Hailer, Chairman of Diffractive, who will continue to serve as Chairman of the combined company.

David Littleton, currently Chief Executive Officer of F/m, will serve as President of Diffractive, and Alexander Morris, F/m's President and CIO, will become Diffractive's Chief Operating Officer and CIO of F/m Investments, LLC. According to Littleton, "F/m was founded in the belief that active portfolio management by specialized boutiques can generate superior long-term performance. By combining the power and resources of Diffractive and F/m, we will give investors the best of both worlds: access to leading boutique managers along with the scale and efficiency of a world-class multi-manager platform."

Founded in 2018, Boston-headquartered Diffractive owns equity stakes in leading boutique asset managers including Emerald Asset Management, Greenbacker Capital Management, Gitterman Asset Management, Mar Vista Investment Partners, Wavelength Capital Management and Ziegler Capital Management. Its affiliated managers deliver differentiated active strategies to investment professionals and their clients, including access to a stable of impact-focused alternative strategies and structures as well as core equity and fixed income portfolio solutions.

F/m was founded in 2019 and serves as a strategic partner and resource provider for independent investment managers and boutiques in the US and overseas. Washington, D.C.-based F/m's investment partners include Genoa Asset Management, Integrated Alpha Investments and North Slope Capital, LLC. Among F/m's products is the US Benchmark Series, a suite of US Treasury exchange-traded funds (ETFs) that is designed to give investors fixed income precision and frictionless access to US Treasuries.

The agreement is subject to the customary client consents and closing conditions and is expected to close in the first quarter of 2023.

Terms of the transaction were not disclosed.

Diffractive is a multi-boutique asset management company and a platform company of 1251 Capital Group. Our expertise lies in identifying unique and innovative investment strategies and uncovering partnership opportunities where centralized distribution can drive significant growth. 1251 Capital Group was established with permanent capital from a select group of high-net-worth investors. Prior to launching 1251 Capital, its senior executives spent a combined 55 years investing capital in the asset management industry on behalf of TA Associates and Natixis Global Asset Management. In Diffractive, we set out to operate actively different from other capital partners in the asset management sector. For more information, visit www.diffractivemanagers.com.

F/m serves as a catalyst, strategic partner, and resource provider for independent investment managers and boutiques across the US and overseas pursuing growth, seeking transitions, or striving to capitalize on unique opportunities. F/m provides the platform and resources to power growth and independence for asset managers by assisting with strategic planning, business operations, SEC registration and compliance, trading and operations, portfolio accounting/performance measurement and distribution. For more information, visit us at www.fmacceleration.com.

Contact:
Erin Daigle
The Hubbell Group, Inc.
Mobile: 860-550-4488
Email: [email protected]

SOURCE Diffractive Managers Group