Spouting Rock Asset Management, a multi-boutique manager platform providing investment solutions and services, entered into a definitive agreement to acquire a majority position of Reinhart Partners, in a multi-step transaction over a period of two years. Reinhart is an investment management firm that services institutions and high-net-worth individuals. Closing is subject to customary conditions, with the first closing expected to occur during the first quarter of 2023.
Managing approximately $2.5 billion (as of 11/30/22) in client assets, Reinhart believes meaningful long-term performance can be generated by investing in high-quality, durable business models at discounts to their private market value. Reinhart’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. Reinhart was founded in 1991 in Milwaukee, WI, by president and CEO James Reinhart. 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.
In addition to acquiring Reinhart, Spouting Rock is excited to bring in a new strategic partner, Glenn Murray. Glenn brings more than 35 years of industry experience from institutional consulting to private equity in entertainment, technology and real estate.
“High-quality, research-driven stock selection is the foundation of the investment philosophy at Reinhart Partners,” Reinhart said. “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.”
“Spouting Rock is in the midst of a period of strategic expansion as we look to grow our platform of forward-thinking investment solutions,” Marc Brookman, CEO of Spouting Rock, said. “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.”
“We think now is a great time to acquire stakes in boutique alpha-generating managers like Reinhart, despite the challenging market environment,” Brookman said. “We firmly believe in the long-term growth potential of these types of asset managers, including long-only and alternatives.”
