Palmer Square Capital Management is to acquire a majority interest in Kansas City-based Fountain Capital Management.
Fountain provides added investment capabilities to Palmer Square, an asset manager focused on providing alternative and credit investment solutions to a wide range of investors.
Founded in 1990, Fountain Capital Management specialises in managing high yield bond and bank loan portfolios, with a particular focus on the higher quality portion within high yield credit. Similar to Palmer Square, which focuses on delivering absolute returns with low beta, Fountain seeks to add value over a full market cycle with a constant focus on managing risk.
"This is an exciting announcement for our firm," says Christopher D Long (pictured), president of Palmer Square. "As Kansas City-based asset management firms, Fountain and Palmer Square move in similar circles and have known each other and worked together for many years. I am thrilled to have an opportunity to work with the professionals at Fountain on a daily basis. Their experience with credit investing, stellar track record, and strong management team will add even more depth and expertise to our current and future investment offerings."
"We are looking forward to the opportunities this partnership will bring to our clients and team," says Doug Campbell, co-founder and partner of Fountain. "Palmer Square has a strong history within the credit markets and the alternative investment space and has an enviable pedigree of providing outstanding investment products to the marketplace."
Fountain was advised by Colchester Partners.
Palmer Square is part of Montage Investments, a diverse group of institutional investment managers that collectively manage more than USD13bn for a wide range of investors. Montage supports Palmer Square’s distribution efforts through its team of 35 distribution professionals who are located throughout the country.