Perritt Capital Management [view profile] founder, president and CEO Dr. Gerald Perritt has inked a tentative agreement with chief investment officer Michael Corbett under which Perritt will transfer majority control of the Chicago fund firm to Corbett. [SEC filing]

Gerald Perritt

Perritt Capital, which has total AUM of $500 million, manages two mutual funds -- Perritt MicroCap Opportunities Fund (PRCGX) and Perritt Emerging Opportunities Fund (PREOX) -- as well as separate account portfolios.

Perritt will cease to serve as portfolio manager when the transaction closes.

Perritt owns 50 percent of Investment Information Services, parent of Perritt Capital. The tentative agreement would transfer control of IIS to Corbett effective October 5, according to an SEC filing. The transaction will result in Corbett having a 50.5 percent ownership stake in IIS.

Terms of the transaction were not made public.

Michael Corbett

"As part of the transaction, certain shares of IIS will be retired and Dr. Perritt will sell his interest in IIS to Mr. Corbett, in consideration for a cash payment on the closing date, with additional payments to follow subject to a number of conditions," read the filing.

Perritt was the first executive director of the American Association of Individual Investors (AAII) and editor of the AAII Journal in 1981. He left in 1983 to launch IIS, a newsletter publishing firm focused on small company investing. Perritt in 1987 started Perritt Capital Management.

Corbett has been with the firm since 1990, starting out as a research analyst. 

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