# Water Island Capital, LLC

> Water Island Capital, LLC is an SEC-registered investment advisory firm in New York, NY, registered since 2000, reporting $1 billion to $5 billion in regulatory assets under management in its Form ADV filing dated March 30, 2026.

- CRD: 113358
- Filed as: WATER ISLAND CAPITAL, LLC
- Registration: SEC-registered investment adviser (status as filed: Approved)
- Location: New York, NY
- Filing period: October 2026
- Form ADV filing dated: March 30, 2026
- SEC record (IAPD): https://adviserinfo.sec.gov/firm/summary/113358
- AdvisorCensus page: https://advisorcensus.com/firm/water-island-capital-llc-new-york-ny-113358

## Quick answers

**How is Water Island Capital, LLC compensated?**
On its Form ADV (Item 5.E, October 2026), Water Island Capital, LLC reports these compensation arrangements: a percentage of assets under its management; performance-based fees. The amounts are in Item 5 of its Form ADV Part 2A brochure.

**Where is Water Island Capital, LLC located?**
Water Island Capital, LLC's principal office is in New York, NY, according to its Form ADV.

**Is Water Island Capital, LLC registered with the SEC or a state?**
Water Island Capital, LLC is an SEC-registered investment advisory firm, registered since 2000. Status as filed: Approved. CRD 113358.

**How much does Water Island Capital, LLC manage?**
Water Island Capital, LLC reports $1,218,302,787 in regulatory assets under management in its Form ADV filing dated March 30, 2026 (100% discretionary).

**How have Water Island Capital, LLC's assets and staff changed since 2021?**
In the Form ADV data for Water Island Capital, LLC: Regulatory assets under management: $3,176,244,888 in the October 2021 data and $1,218,302,787 in the October 2026 data, down 62%. Total employees: 41 in October 2021 and 26 in October 2026. Assets under management move with markets as well as with clients coming and going.

**What types of clients does Water Island Capital, LLC serve?**
By number of clients on Form ADV Item 5.D: investment companies (6); pooled investment vehicles (other than investment companies and business development companies) (1).

**Does Water Island Capital, LLC report any disciplinary disclosures?**
Reports no disclosure items on Form ADV Item 11. The detail of any item is on the firm's SEC record: https://adviserinfo.sec.gov/firm/summary/113358

**What changed in Water Island Capital, LLC's recent Form ADV filings?**
In the April 2026 filing data: Regulatory assets under management went from $1,414,580,322 to $1,218,302,787 (-14%). Updated its list of owners and control persons (Schedule A).

## From the Form ADV filing

### Compensation (Item 5.E)
- A percentage of assets under your management
- Performance-based fees

### Regulatory assets under management (Item 5.F)
- Total: $1,218,302,787
- Discretionary: $1,218,302,787
- Non-discretionary: $0

### Clients (Item 5.D)

| Client type | Clients | Assets |
| --- | --- | --- |
| Individuals (other than high net worth individuals) | 0 | $0 |
| High net worth individuals | 0 | $0 |
| Banking or thrift institutions | 0 | $0 |
| Investment companies | 6 | $1,190,555,526 |
| Business development companies | 0 | $0 |
| Pooled investment vehicles (other than investment companies and business development companies) | 1 | $27,747,261 |
| Pension and profit sharing plans (but not the plan participants or government pension plans) | 0 | Not reported |
| Charitable organizations | 0 | Not reported |
| State or municipal government entities (including government pension plans) | 0 | Not reported |
| Other investment advisers | 0 | Not reported |
| Insurance companies | 0 | Not reported |
| Sovereign wealth funds and foreign official institutions | 0 | Not reported |
| Corporations or other businesses not listed above | 0 | Not reported |
| Other | 0 | Not reported |

### Advisory services (Item 5.G)
- Portfolio management for investment companies (and business development companies)
- Portfolio management for pooled investment vehicles (other than investment companies)

### Firm details
- Registered since: 2000 (26 years)
- Employees: 26 total, 7 performing advisory functions
- Wrap fee program participation: No
- Disclosures (Item 11): Reports no disclosure items on Form ADV Item 11.

### Websites listed on Form ADV (Item 1.I)
- [altsharesetfs.com](https://altsharesetfs.com)
- [arbitragefunds.com](https://arbitragefunds.com)
- [waterislandcapital.com](https://waterislandcapital.com)
- [waterislandindices.com](https://waterislandindices.com)
- LinkedIn @WATER-ISLAND-CAPITAL-LLC

## Assets and staff over time

| Data period | Regulatory assets under management | Employees | Filing dated |
| --- | --- | --- | --- |
| October 2021 | $3,176,244,888 | 41 | March 30, 2021 |
| October 2022 | $3,199,554,035 | 34 | March 29, 2022 |
| October 2023 | $2,252,014,985 | 35 | March 30, 2023 |
| October 2024 | $1,589,726,167 | 33 | March 27, 2024 |
| October 2025 | $1,414,580,322 | 25 | March 31, 2025 |
| October 2026 | $1,218,302,787 | 26 | March 30, 2026 |

Regulatory assets under management: $3,176,244,888 in the October 2021 data and $1,218,302,787 in the October 2026 data, down 62%.
Total employees: 41 in October 2021 and 26 in October 2026.

## Changes in the filing (last 12 months)

### April 2026
- Regulatory assets under management went from $1,414,580,322 to $1,218,302,787 (-14%).
- Updated its list of owners and control persons (Schedule A).

## Source

Form ADV as filed, October 2026. Values appear as filed. Cite as: AdvisorCensus. Water Island Capital, LLC (CRD 113358): Form ADV filing data as of October 2026.