Ark Investment Management, the sponsor of this year’s best-performing ETF, has won its battle with minority owner Resolute Investment Managers for control of the firm.
Ark Founder, CEO and Chief Investment Officer Cathie Wood has entered into agreements with Resolute to repurchase the option that retains her majority interest in the firm, for an undisclosed sum, and extinguishes Resolute’s option to acquire an additional equity stake, according to a joint press release.
Resolute, which is backed by private equity firm Kelso & Co., will continue to be a minority shareholder in Ark and provide distribution services for its products. In addition, the two firms will collaborate on building on additional digital distribution efforts.
“We can succeed only with strong partners by our side and we are delighted to have reaffirmed the partnership with Resolution for our U.S. distribution,” Wood said in a statement.
Gene Needles, Resolute’s chairman and CEO, said his firm is “pleased to continue being an instrumental part of Ark’s growth,” noting that the firm’s minority stake in Ark dates back to 2016.