The fight for control of Ark Investment Management ended after CEO Cathie Wood bought the option that threatened her control.
Wood signed an agreement with Resolute Investment Managers that allows him to remain a majority shareholder in Ark, according to Monday’s statement. Ark, which has $ 43.6 billion in assets under management, will maintain Resolute’s distribution services for its products.
Photographer: Alex Flynn / Bloomberg
Wood repurchased the option for an undisclosed amount. The transaction was financed through a “multi-installment loan financing mechanism provided by Eldridge Corporate Funding LLC”, according to the statement.
Last month, Resolute moved to exercise its option, acquired in July 2016, to buy a controlling vote and shareholding in Ark. Resolute’s actions came just three days after Ark said it would explore the possible replacement of Resolute Investment Distributors Inc. – an affiliate of Resolute Investment Gestores – to distribute its products. Wood said at the time that she was “disappointed” by Resolute’s move.
“Cathie Wood and her team did an exemplary job building ARK Invest from scratch and we look forward to supporting the company’s momentum in the years to come,” said Gene Needles, CEO of Resolute, in a statement. “We are pleased to continue to be a fundamental part of ARK’s growth, a role we have fulfilled since the acquisition of a minority investment in the company in 2016.”
Earlier this month, Wood told Bloomberg News that the dispute was he went to a friendly settlement that would leave her in control. She said on Monday that she was “very happy to have reaffirmed the partnership with Resolute for our distribution in the United States”.
Ark’s exchange-traded funds have grown in popularity this year, catapulting Wood into the limelight as one of the first active ETF managers. Her The ARK Innovation ETF (ARKK) has just gone through another record week of inflows, driving the total cash added this year to $ 9.5 billion. The fund grew more than 170% in the year.