NEW YORK, Nov. 25, 2013 /PRNewswire/ -- Terrapin Asset Management, LLC ("Terrapin") publicly announced today that it acquired the hedge fund and private equity fund advisory business of Hennessee Group LLC ("Hennessee").
The transaction was initiated at the end of 2012, but was not fully consummated until mid-year 2013 as the firms provided clients with the flexibility and time necessary to transfer their accounts. Terrapin achieved 100% client retention. Terms of the deal have not been disclosed. Terrapin and Hennessee maintain independent operations and will remain unaffiliated.
Hennessee, based in New York, provided investment advisory, hedge fund research and portfolio management services to high net worth and institutional clients. Hennessee retains the Hennessee Hedge Fund Index, and continues to publish the Hennessee family of hedge fund indices and the monthly Hennessee Hedge Fund Review Report. Hennessee also continues its efforts to partner with an institution within the hedge fund ETF space.
Hennessee's hedge fund advisory business was founded in 1987 by Wall Street pioneer Elizabeth "Lee" Hennessee as a division of Shearson Lehman Brothers/American Express. The Hennessee Hedge Fund Index, also founded in 1987, was one of the first indices to track broad hedge fund performance. In 1995 Charles Gradante left his position as President and CEO of Union Chelsea National Bank to partner with Lee Hennessee, becoming President and CEO of Hennessee Group, orchestrating the sale of the Hennessee Hedge Fund Advisory business to Weiss, Peck & Greer and further institutionalizing the management and growth of the business.
Ms. Hennessee commented, "After more than twenty-five years in the hedge fund advisory business, we made the decision to entrust our client relationships with Terrapin and focus on our research and Hennessee Index products and publications."
Mr. Gradante added that, "It was time for Lee and me to provide our clients with new leadership in the direct-investing advisory business and for us to spend more time on our charitable foundation and philanthropic interests."
Terrapin will maintain preferred access to the Hennessee Hedge Fund Indices, monthly hedge fund performance press releases, and the Hennessee Hedge Fund Review publication.
"We are excited to substantially grow our direct-investing advisory business with this transaction," said Terrapin's President, Dean Rubino. "This puts Terrapin firmly on the path of adding value through service in what has become a product-dominated marketplace." Mr. Rubino further commented that, "a lot of things matter to investors when they are investing directly in alternative investments. Service matters, fees matter, size matters, sometimes tax efficiency matters, performance matters, and redemption-term optimization matters, along with a host of other factors, but few business models outside guided-direct-investment advisory are able to cater to these critical client interests."
About Terrapin Asset Management
Founded in 1998, Terrapin's network of companies focuses on asset management. Terrapin Asset Management, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission and founded in 2001, manages and advises on investments for private funds, institutional investors and high net worth individuals, including Terrapin's principals.
About Hennessee Group
The Hennessee Group LLC, or its principals, have advised clients in direct investing in hedge funds since 1987. Lee Hennessee formed what we believe to be the first hedge fund consulting division of an international bank at Republic National Bank in 1992, following the formation of the Hennessee Hedge Fund Advisory Group in 1987 at Shearson Lehman Brothers/American Express. Prior to partnering with Lee Hennessee in 1995, Charles Gradante was CEO of Chelsea Bank, one of the first U.S. national banks to offer hedge funds to its high net worth clients.
The statements in this press release that concern or are attributed to either Hennessee or Terrapin (the "Parties") are made exclusively by such Party. Neither Party makes any warranties or representations as to the accuracy or completeness of, nor undertakes any responsibility for, or obligation to update, revise or correct, the content of statements made by the other Party.
The statements in this press release include statements regarding the intent, belief or current expectations of representatives of either Terrapin or Hennessee, as well as assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "strives," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and neither Terrapin nor Hennessee undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to operations and their results over time, unless required by law.
SOURCE Terrapin Asset Management, LLC; Hennessee Group LLC