Chicago-based hedge fund firm Rail-Splitter Capital Management is in the process of merging into RMB Capital Management, RMB confirmed Monday.
The deal is expected to be finalized March 1, with Rail-Splitter’s core investment management team and founder John Croghan moving into the RMB headquarters on LaSalle Street, said Christopher Graff, RMB director of asset management.
The Rail-Splitter team will continue to operate its hedge fund business, while RMB will provide operational support ranging from marketing to administrative functions, said Graff, who described the arrangement as a joint venture.
“The strategy will continue to stand alone and retain their name,” Graff said.
RMB was launched in 2005 by a team that had worked together at UBS. The firm, which invests in stocks, bonds and alternative strategies, has added four other hedge fund businesses since 2006. All operate independently within the RMB structure, said Graff. RMB managed about $6 billion in assets as of the end of 2016.
Rail-Splitter did not return phone calls, and Graff declined to say if the full Rail-Splitter staff would be assumed by RMB. In Rail-Splitter’s February 2016 filing with the Securities and Exchange Commission, the company reported that it was managing $585 million in assets.
The Rail-Splitter addition will provide RMB with investment expertise focused on the technology and health care sectors, said Kate Demet, RMB director of marketing and communications.
Besides its headquarters in Chicago, RMB has offices in Denver; Jackson Hole, Wyo.; New York; and Washington, D.C.
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