Southport Lane Management, a private equity fund manager based in New York, has agreed to invest USD20m to support the continued expansion of the Capital Guardian wealth management business.
Capital Guardian was selected by Southport Lane for its combination of strong management, global platform, and focus on the adviser experience.
The investment will expand Southport Lane’s global asset management footprint.
Alan Boyer, chief executive of Capital Guardian, says: “We are excited to partner with a group whose key individuals have deep roots in the wealth management sector and truly understand the challenges facing our industry. Furthermore, they have demonstrated the ability to execute at the highest level in the sector and are committed to preserving our independence to serve our advisors and clients.”
Also key to Southport Lane’s decision was Capital Guardian’s strategic relationship with Pershing, an essential component in being able to meet the needs of its client base which includes affluent individuals, family offices, asset managers and institutional investors. With USD29.3trn in assets under custody and administration with its parent company Bank of New York Mellon, the Pershing platform provides clients with a high-level of security and comfort along with access to the state of the art products and services they require.
“Capital Guardian represents a rare combination of a talented, enthusiastic team and business model, which has been properly crafted to meet the current challenges of wealth management. We believe strongly that a robust platform, which allows advisors to manage their own businesses with the full support of institutional grade resources, is a compelling solution for today’s financial advisors,” says Joel Plasco, chairman of Southport Lane who will become the chairman of Capital Guardian.
In addition to the continued growth of the existing business, the combined Capital Guardian/Southport Lane vision for the future includes the enhancement of capabilities for Capital Guardian’s advisers and clients, which include expanded M&A advisory services, access to a wider selection of institutional grade alternative asset managers, a bespoke family office offering and greater international capabilities.
The investment is subject to regulatory approval.
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