New York Life Insurance Co. has acquired a majority stake in Private Advisors, a Richmond, Va.-based firm with more than $3.5 billion in assets under management.
The deal does not yet seem to have been publicly announced, but Fortune has obtained a letter sent earlier by Private Advisors to its clients. It reads, in part:
[Update: There is now a press release]
The deal is for a 60% stake at closing, after which New York Life — via its New York Life Investments subsidiary — will acquire additional 20% stakes at three times over the next seven years. No financial terms were disclosed.
Virginia-based Private Advisors manages a series of private equity, venture capital, hedge and arbitrage funds-of-funds. It experienced a bit of management shake-up earlier this year, when firm co-founder Rafael Astruc resigned suddenly. No explanation was ever given for the move, due to confidentiality clauses in the separation agreement.
Here is the entire letter: