Pioneer Investments of Boston and Oak Ridge Investments, LLC of Chicago (Oak Ridge) jointly announced that Oak Ridge will repurchase the 49% stake in Oak Ridge purchased by Pioneer in 2005. In addition, the firms agreed to propose that the two Pioneer funds for which Oak Ridge currently serves as investment sub-adviser — Pioneer Oak Ridge Small Cap Growth Fund (ORIGX) and Pioneer Oak Ridge Large Cap Growth Fund (ORILX) — reorganize into newly established funds for which Oak Ridge will serve as investment adviser.
There will be no change to the portfolio management teams or investment philosophies of either fund. Oak Ridge has provided day-to-day portfolio management services for Pioneer Oak Ridge Small Cap Growth Fund since 1994 and for Pioneer Oak Ridge Large Cap Growth Fund since 1999, including their predecessor funds.
The partnership between the two firms was highly successful. With Pioneer's distribution support, the two Pioneer Oak Ridge funds increased assets under management from $24 million at the inception of the partnership to $2.1 billion as of September 30, 2014.
Oak Ridge has determined that the independence produced by the transaction will allow the firm to attract additional capital that will help it further expand its business. David Klaskin, Founder and CEO of Oak Ridge, said, "Our affiliation with Pioneer Investments was extremely successful and has put us in an excellent position for our next growth phase. I am grateful to Pioneer for being an integral part of our success in growing Oak Ridge Investments from $1.2 billion under management, to the current size of over $4.3 billion as of September 30, 2014. Oak Ridge will now be 100% employee owned as a result of the transaction. Our equity will support the firm in retaining and attracting professional staff by expanding our ability to offer equity based incentive compensation."