UK – London-based investment management group, Gartmore, has acquired New Jersey-based hedge fund of funds management firm, Riverview International Group, for an undisclosed sum.

Riverview, to be renamed Gartmore Riverview, was established in 1999 and has $350m under management mainly for institutional clients. Gartmore says it will allow its new subsidiary to retain a “significant degree” of independence from the Gartmore Group.

Riverview’s four founding board members will continue to run the company, but will be joined by two Gartmore executives, Paul Hondros and Glyn Jones.

The acquisition represents Gartmore’s first foray into the hedge fund of funds business, although it launched its first hedge fund product in 1999.

“That has since grown to a value of $2.3bn (€2.4bn). We consider the hedge fund business to be an area of major growth, particularly the fund of funds side,” says a spokeswoman.

Gartmore announced earlier this year that its strategy favoured organic growth from existing group products but the spokeswoman said the company was not adverse to acquisitions of this type.

“We are not about to embark on a buying spree, but we felt this was an excellent investment. We will acquire other companies if the opportunities arise, but this is not the general strategy we are pursuing at the moment,” she explains.

She says the company is not limiting its hedge fund business to the US and considers Europe as important a market for expansion.