Increasing U.S. Brand Recognition for a European Asset Management Firm
Role: US Small/Mid Cap Growth Team
Our client is a $30B UK-based asset management firm with 17 different equity investment teams in the UK, Europe, Asia and US. Each team operates as an independently managed investment boutique with significant equity participation for fund managers and staff. Each strategy has a capacity limit which is agreed upon at time of launch to achieve the goal of investment returns as opposed to asset gathering. As the firm seeks to expand its product offerings in the US the directive was to add a small/mid growth team with a strong track record in both institutional and retail channels.
While our client’s products have strong track records and distribution in the UK and Europe, brand recognition in the US is less evolved. The firm recognized the need to increase presence in the US and to develop products to fill gaps in their offerings to the Institutional and Retail channels. Our mandate was to find a team of investors (2-3); 2-3% outperformance and track record on a 1-3-5 year basis; easily defined and articulated investment process and discipline; good relationships and relationships in the Institutional marketplace; entrepreneurial and self-motivated.
Strategy and Result
Our target universe included small and mid-sized firms with strong track records of performance in the growth category. Additional targets were the Co-Portfolio Managers and Associate Portfolio Managers in large institutional and retail organizations. The goal was to identify strong teams and recruit the top performing members of those teams. We identified a short list of six teams who interviewed with the client and presented their business plan. Of those six, three were selected and entered a full due diligence process. Of those, a team of three senior PMs were recruited. The first product was launched in September 2014. Additional products including a L/S and UCITs product will be launched in 2015.
The successful recruitment of this team led to another engagement to recruit an International/Global Value team which is currently underway.