Victory Capital’s parent company, Victory Capital Holdings, has acquired a minority stake in Cerebellum Capital, an investment management firm that specialises in machine learning.
Founded in 2008, San Francisco-based Cerebellum leverages machine learning techniques to continuously design, execute and improve investment programmes.
The platform is based on a collective 30 years of research by co-founders David Andre and Astro Teller. Andre currently serves as chief executive officer of Cerebellum and is a member of the company’s board of directors. Teller, who is currently chief executive officer of Google X, served as Cerebellum’s chief executive officer from 2008 to 2010. He continues to be an active director on Cerebellum’s board.
“We believe artificial intelligence represents a tremendous opportunity to augment and evolve active investment management,” says David Brown (pictured), chairman and chief executive officer of Victory. “We are excited to take part in this evolution of learning and look forward to leveraging Cerebellum’s platform to create and deliver innovative investment solutions for our clients.”
“We are very pleased to receive the backing of Victory Capital, a firm that shares our view on the importance of continuous business innovation and improvement,” says Gary Mueller, chairman of Cerebellum. “We look forward to working with Victory to evaluate how our platform can be applied across a broad variety of asset classes and investment vehicles to improve investor outcomes.”
“Many industries are increasingly leveraging the power of artificial intelligence to better understand and analyse information, and we believe there is real opportunity to enhance investment solutions using machine learning technology,” says Andre.
Brown has been named to the board of directors of Cerebellum Capital effective immediately. Terms of the transaction were not disclosed.