Principal Global Investors LLC, a global asset manager and member of the Principal Financial Group, announced today it is purchasing a 55 percent interest in Liongate Capital Management, a boutique hedge fund portfolio manager based in New York and London.

The partners of Liongate will retain 45 percent interest and will manage Liongate. The price of the acquisition, which is expected to be completed the second quarter of this year, was not revealed.

Liongate, founded in 2003, has $2.1 billion in assets under management in comingled funds and dedicated client portfolios, according to the firm. Its client base includes pension funds, insurance companies and sovereign wealth funds. Principal Global Investors, based in Des Moines, Iowa, manages $281.5 billion in assets, primarily for retirement plans and other institutional clients.

“Liongate is a welcome addition to our multi-boutique investment management structure. The partnership will enhance our capabilities in alternative investments, which is an area where client demand continues to grow,” says Jim McCaughan, CEO of Principal Global Investors.