Boston-based investment firm Gordon Brothers Group has established GB Investment Management Group (GBIMG), a wholly owned subsidiary, to manage funds and legacy investments of the company.

The company said that GBIMG currently has more than $500 million under management, is expanding its existing funds, and will be pursuing other industry and sector-focused funds.

Mark J. Schwartz will become president and chief executive officer of GB Investment Management Group. Michael G. Frieze will become president and CEO of Gordon Brothers Group.

"Forming an umbrella group to manage all of our investments and lending activities is the next logical step in our evolution," said Frieze. "Under Mark's leadership, we expanded our debt and equity activities in 2002, established debt and equity funds with institutional investors in 2006 and are now building on the firm's success managing alternative investments."