State Street Global Alliance has acquired a minority interest in Sectoral Asset Management, a Montreal-based institutional investment management firm focused on the healthcare sector.

Sectoral, with US$2.9 billion in assets under management, specializes in managing global equity portfolios in the worldwide healthcare and pharmaceutical/biotechnology sectors. In addition to separately managed institutional accounts, Sectoral manages healthcare mutual funds on behalf of US and global clients. Terms of the deal were not disclosed.

Sectoral joins Global Alliance’s global portfolio of firms, which includes two other minority investments and five majority-owned firms. State Street Global Alliance is the strategic venturing partnership jointly owned by State Street Global Advisors and Stichting Pensioenfonds ABP, one of the world’s largest pension funds.

“The healthcare sector is one of rapid growth, and the addition of Sectoral, with its vast expertise and outstanding track record, is an important addition to our global portfolio,” said Jared Chase, chairman of State Street Global Alliance.

“We are delighted to be joining State Street Global Alliance,” said Jerome Pfund, CEO of Sectoral. “This milestone is significant for our company and with Global Alliance as a partner the stage is set for further development, in particular, in the North American institutional market.”