Pension Consulting Alliance is reorganizing its management structure as part of a transition that will allow more employees to become owners, says Allan Emkin, the firm's founder and managing partner.
The 69-year-old Mr. Emkin, who owns 70% of the firm, said in an email that he has no plans to retire. But he added that his stake in the firm will be cut to 50% over the next 18 months to three years. He said this will give more employees the opportunity to buy into the firm.
Mr. Emkin, an iconic figure in the pension consulting industry, founded PCA in 1988. The firm's consulting clients include the $320.7 billion California Public Employees' Retirement System, Sacramento, and the $202.8 billion California State Teachers' Retirement System, West Sacramento.
Mr. Emkin also said that two PCA managing directors have joined its board — Tad Fergusson, private equity head, and Kay Ceserani, the co-head of the firm's defined contribution business.
“The new PCA board will continue our tradition of conflict-free advice and always putting the clients' interests first,” Mr. Emkin said in the email. “ I will be able to focus more of my time working directly with clients and less time on managing the business.”
Mr. Emkin said no changes are planned for PCA's business practices, including its practice of not offering OCIO services. While many institutional consulting firms have started offering the services, Mr. Emkin has maintained the OCIO business creates a potential conflict of interest for the firms.
PCA is based in Portland, Ore., but Mr. Emkin operates out of Los Angeles. It has more than $1.2 trillion in assets under advisement.