Dec 9, 2024
Consolidation in asset management is one of
the industry's most important trends. When any industry enters a
mature phase, consolidation brings the benefits of economies of
scale, product depth, and broader services to meet client demands.
We’ve seen a rising tide of merger activity in recent years,
effecting both asset managers and allocators alike.
My guests on today’s show are leaders of two organizations that
announced mergers in October – Simon Krinsky, a Managing Partner at
Hall Capital and Tim McCusker, CIO at NEPC. Hall announced a merger
with Pathstone, adding its $45 billion in assets to Pathstone’s
$100 billion. NEPC announced a sale of a majority stake in its firm
to Hightower Holdings, adding NEPC’s $1.8 trillion of assets under
advisement to Hightower’s $130 billion of assets under management.
Both Hall and NEPC have been longstanding independent organizations
that are selling to a partner backed by private equity owners.
Simon and Tim walk through their rationale for the transactions,
deal process from idea to signing, and opportunities and challenges
going forward. The organizations share similarities in their long
independent history, broad equity ownership, and investment
capability, while also having significant differences in their new
partners, incentive structure, and plan to service clients.
Together, Simon and Tim offer an inside look at dealmaking in asset
management.
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