On Monday, Principal Financial Group (NASDAQ:PFG) announced that its Principal Global Investors asset management subsidiary has agreed to buy a 55% stake in "fund-of-hedge-funds" manager Liongate Capital Management. Liongate's partners will retain a 45% share of the company, and will continue to manage Liongate after PFG takes its position.

Liongate's business focuses on helping pension funds, insurance companies, and sovereign wealth funds invest their wealth in a diversified manner among portfolios of various hedge funds. In a statement, PFG noted that it views the company as a way to "help extend its product offerings into customized multi-asset and hedge fund solutions."

The acquisition is expected to close in the second quarter of 2013. Financial terms were not disclosed in the press release. At $2.1 billion in assets, even if all of Liongate's assets were attributed to PFG, this would represent an increase of less than 1% in PFG's total assets under management.