Northern Trust’s subsidiary 50 South Capital is buying a hedge fund owned by French group Natixis Global Asset Management.

In a statement on Thursday, the Chicago-based bank confirmed plans to purchase Aurora Investment Management, also located in Chicago.

The deal is set to allow Northern Trust to expand its hedge fund investment options it offers to high net worth and institutional investors.

No financial terms were disclosed although both parties expect the transaction to be wrapped up by the end of September.

When combined, the enlarged business will manage and advise on about $9bn, doubling 50 South Capital's current assets under management.

50 South Capital chief Robert Morgan will lead the merged company while Aurora Founder and chief exec Roxanne Martino will act as a senior adviser through the takeover.

Aurora’s business model is based on a fund-of-funds approach, in which money from clients is invested in a variety of hedge funds, allocating across different funds and managers.

50 South Capital was set up as an 'investment boutique' by Northern Trust's alternatives group last year.