Affiliated Managers Group, a money manager holding company, acquired a majority stake in Burridge Associates Inc., a Chicago equity investment manager.
Burridge, which manages $1.3 billion in growth stocks, is headed by Richard M. Burridge, 67, a former vice chairman of Alliance Capital. Under the deal, which is expected to close next month, Burridge's management will retain close to 50% of the partnership's shares and will initiate a succession plan.
Boston-based Affiliated, a three-year-old company founded by former Boston Co. president William J. Nutt, now owns stakes in seven investment firms that hold an aggregate of $18 billion under management. Affiliated prefers to take an interest in money managers rather than buy them outright.
"When you leave direct equity, it works well for clients and employees as well as founders," Mr. Nutt.
Burridge - part of Alliance until Mr. Burridge bought it ten years ago - manages money for institutional clients and wealthy individuals in separate accounts as well as mutual funds.