Angelo Gordon takes first steps in succession planning

Angelo Gordon & Co. announced succession planning initiatives that include a new four-member management committee and moving firm ownership to senior employee partners from the founders, according to a letter by Michael L. Gordon, CEO and chief investment officer.

In the letter, Mr. Gordon said he has no plans to retire any time soon, but wrote that Angelo Gordon executives created the succession plan “with an eye on preserving our culture and clarifying our management plans for the future.”

The 37-year-old alternatives investment firm will continue to be 100% owned by its founders and employees, and their heirs. The firm's goal is for senior employee partners to gradually acquire the controlling equity interests of the firm founders over the next five years. The founders will retain “a significant, non-controlling interest.” Co-founder John M. Angelo died Jan. 1.

The transition plan includes granting restricted stock units and strengthening restrictive covenants designed to retain employees and ensure the firm's long-term stability, the letter said.

“Our senior employee partners will be investing substantial additional capital in the firm,” the letter states. Further details on the sale of the firm ownership to senior employee partners could not be learned by press time. Jonathan Gasthalter, Angelo Gordon spokesman, declined comment.

Members of the new management committee are Mr. Gordon, Kirk Wickman, chief operating officer; Adam Schwartz, a managing director and the head of U.S. and European real estate; and Josh Baumgarten, deputy CIO.

Angelo Gordon had $26 billion in assets under management as of Sept. 1.