Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. Print
April 29, 2002 01:00 AM

Investing in a hedge fund: Private equity firm TA Associates looks into new areas of growth

Dave Kovaleski
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    BOSTON - With a $110 million investment in Clinton Group, Boston-based TA Associates became one of the first private equity firms to invest in a hedge fund manager.

    Clinton Group, New York, is the latest in a string of money management firms that have received funding from TA Associates, one of the leading private equity investors in money management firms. "We are a money management firm that likes to invest in money management firms," said Andy McLane, senior managing director at TA Associates.

    Consultants say the investment in the hedge fund firm, as well as other money management firms, is fairly novel in the growth-oriented world of private equity investing. But Paul Yett, vice president and investment manager in the venture capital business at Hamilton Lane Advisors Inc., Bala Cynwyd, Pa., said TA Associates has a broader, more diversified investment strategy than most private equity firms, a strategy that has served them well in recent years. The Clinton Group investment shows that they are expanding beyond the traditional areas of private equity firms, looking to new growth areas.

    "They have a good understanding of financial markets," said Mr. Yett, "and that comes through research."

    Previous investments

    Some of the firms TA has invested in over the last 10 years or so are AIM Management Group Inc., Houston, now part of AMVESCAP; Keystone Investments Inc., Boston, now part of Wachovia Corp.; Allegis Realty Investors LLC, Hartford, Conn., acquired by UBS Brinson; Altamira Management Ltd, Toronto; Thomson Advisory Group, Stamford, Conn.; Affiliated Manager Group, Boston; and ValueQuest Ltd., Marblehead, Mass., which became ValueQuest/TA.

    AIM and Thomson, which became PIMCO Advisors LP, were TA's most successful investments, posting 24 times return on investment.

    Altamira and Clinton are the only managers currently in TA portfolios. TA manages more than $5 billion in nine different portfolios for limited partners such as the $150 billion California Public Employees' Retirement System, Sacramento; the $27.6 billion pension fund of AT&T Corp., Basking Ridge, N.J., and the $26.8 billion Massachusetts Pension Reserves Investment Management Board, Boston. The portfolios, which focus on health care, technology, and financial services investments, were top quartile performers in 2001.

    AMG, which is no longer in any TA portfolios, was formed by TA Associates in 1993 with Bill Nutt, formed Boston Co. president, as chief executive officer. AMG now has 15 subsidiaries and $92 billion in assets under management.

    AMG is not a typical TA Associates investment. It traditionally invests in established firms with good performance records, management, and profitability, attributes tough to find in recent years. As the stock market downturn dragged assets and hurt traditional money management firms, TA Associates turned its sights to other areas within the industry.

    The investment in Clinton Group reflects that shift. Hedge fund firms are one of the fastest-growing segments of the maturing money management industry. Worldwide hedge fund assets reached more than $500 billion in 2001, from about $15 billion in 1990. "There's a lot of growth in the hedge fund industry," said Mr. McLane.

    In determining companies for investment, Mr. McLane said the Clinton Group stood out because of its long track record, strong management and leadership role in the hedge fund industry.

    The Clinton Group, which manages $5.8 billion in assets, has seen its assets grow faster than the industry as a whole, said Mr. McLane. The firm, which focuses on fixed income and value equity strategies, manages money primarily for high-net-worth individuals and institutions, including pension funds.

    Despite the market downturn, Mr. McLane said there are always new money management firms popping up. "Money management firms are like weeds. You pull them all out and new ones keep coming up," said Mr. McLane.

    Launching another startup, like AMG in 1993, is something the firm would not rule out, he said; it would probably focus on private clients and high-net-worth individuals.

    Recommended for You
    Read the print edition of P&I
    Read the print edition of P&I
    How low is low? Projections say it's not low enough
    How low is low? Projections say it's not low enough
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    Private Markets
    Sponsored Content: Private Markets

    Reader Poll

    August 10, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Gaining Momentum: Where Next for Trend-Following?
    The market opportunity in U.S. residential mortgage-backed securities
    Credit Indices Evolve with Enhanced Data Inputs
    Hedge Funds 2.0: Back to the future
    How Has 2022's Carnage Reshaped Global Stock and Bond Markets?
    Crossroads: Politics, Inflation, & Bonds
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    August 1, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright Ā© 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit