Sat, May 23, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

New York Life Investments to acquire majority stake in Private Advisors, LLC

Friday, December 03, 2010
Opalesque Industry Update - New York Life Investments today announced that it has signed an agreement to acquire a majority stake in Private Advisors, LLC, a premier alternative investment firm based in Richmond, Virginia. With $3.9[i] billion in assets under management, the firm has a 13 plus year track record across a range of high quality fund of funds, including the firm’s flagship low volatility multi-strategy capability, launched in 1998.

“Private Advisors has a long history of delivering risk-adjusted investment returns, with a strong focus on capital preservation. The firm has a well-defined investment process that incorporates investing in alternative investment managers with proven track records,” said John Kim, president and chief executive officer of New York Life Investments.

Private Advisors is led by founder and managing partner Louis Moelchert, Jr, who prior to the creation of the firm managed the endowment for the University of Richmond for over 25 years. The endowment began investing in alternatives in the early 1980s.

"This is a great opportunity for our clients and our firm. New York Life Investments’ multi-boutique investment structure will enable Private Advisors to preserve its long-standing investment philosophy, its experienced investment team and capabilities – all while benefitting from the resources of one of the most reputable financial institutions in the world," said Moelchert.

At closing, New York Life Investments will acquire a 60 percent ownership interest in Private Advisors and Private Advisors’ equity holders will retain the remaining 40 percent. A significant portion of the equity holders’ proceeds will be re-invested in Private Advisors’ funds alongside its clients.

“We believe this structure maintains the alignment of interests between our management and our clients, it encourages employee retention, and places an emphasis on the long-term success of the firm,” said Moelchert.

Private Advisors complements New York Life Investments’ alternative capabilities in private equity and real estate as well as its broad suite of equity and fixed income strategies. The firm represents an opportunity for New York Life Investments to acquire a majority interest in a well-respected, institutional firm with over 60 employees, including 21 experienced investment professionals, and a robust infrastructure.

“Private Advisors’ value-oriented investment approach and emphasis on capital preservation are consistent with that of our organization and our investment boutiques. We are very pleased to have such an esteemed group of investors join the New York Life Investments family,” said Kim.

The parties expect to close the deal on or about December 31, 2010.

(press release)

About New York Life Investments
New York Life Investments ranks among the largest asset management firms in the United States.[ii] Through its multiple boutique management structure, New York Life Investments offers access to leading institutional managers that drive performance. Through MainStay Investments and NYLIFE Distributors LLC, New York Life Investments provides access to some of the most highly regarded mutual funds and wrap accounts in the industry. Together with its affiliates and over 1,400 employees, New York Life Investments manages over $275 billion in assets as of September 30, 2010. New York Life Investments is a leading provider of retirement plans for corporations, multi-employer trusts, and individuals, and is recognized as one of the nation's top providers of guaranteed products to both the qualified and non-qualified markets.

"New York Life Investments" is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC...Corporate website: Source
KM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner