Affiliated Managers Group (“AMG”) recently agreed to acquire a minority interest in alternative investment manager Ivory Investment Management, L.P. Terms of the transaction – which is expected to close by December 31 – weren’t disclosed, but Ivory’s senior partners will continue to hold a majority of the firm’s equity and manage its day-to-day operations. The senior partners also agreed to long-term commitments with Ivory as part of the transaction.
Focus on Capital Preservation
“With a long-term track record of generating exceptional risk-adjusted returns, Ivory is regarded as one of the industry’s premier long/short equity managers,” said AMG Chairman and CEO Sean M. Healey, in a November 8 press release. “We believe that with the firm’s disciplined approach to generating alpha, in addition to its demonstrated ability to protect capital in both positive and negative market environments, Ivory has excellent prospects for strong growth.”
Ivory was founded in 1998 and currently manages $3.6 billion in assets across long/short equity and long-only strategies. These strategies have high, risk-adjusted, absolute returns and low correlation to market indices as their objective. Ivory’s strategies have a track record of capital preservation during periods of market dislocation, according to the statement, and they have generated “significant alpha” across multiple market cycles since its inception, “meaningfully” outperforming the S&P 500 Index “across all relevant time periods.”
Ivory approaches public market investing by assessing companies on a private market, or fundamental value, basis through a research-intensive, bottom-up approach.
“Given AMG’s unparalleled track record of successful partnerships with boutique alternative investment firms around the world, we are excited to join its impressive group of Affiliates,” said Ivory Investment Management founder and Head Portfolio Manager Curtis Macnguyen. “AMG is the ideal partner for Ivory, allowing for the preservation of our firm’s entrepreneurial culture and our focus on providing clients with strong absolute returns.”
“Clients around the world continue to increase their allocations to outstanding alternative firms, and Ivory is positioned to benefit from this ongoing trend,” added Mr. Healey. “I am very pleased to welcome Curtis Macnguyen and his partners to our Affiliate group, and we look forward to working with them on a range of strategic initiatives to help enhance the forward growth of the firm, particularly in their long-only business, which has very strong long-term investment performance and tremendous growth prospects.”
In addition to Mr. Macnguyen, Ivory senior partners include President and Chief Operating Officer Mark Waissar, Senior Portfolio Managers Neil Chudgar and Brad Lundy, and Head Trader Matt Bailey.
For more information, visit Affiliated Managers Group or Ivory Investment Management.