L. DuMond decided to put his 18 years of experience in "what works" with money management firms into a new venture.
Together with a team of senior industry executives, Mr. DuMond founded a new asset management holding company, Overture Asset Managers LLC, New York. Mr. DuMond is Overture's president and chief executive officer. He was president of the intermediary services division of CDC IXIS Asset Management, Boston, where he oversaw sales and marketing of the investment products of five investment subsidiaries.
The firm, formed in October, closed its first deal March 27 when it acquired Avatar Investors Associates Corp., New York. The deal was made through a subsidiary, OAM Avatar LLC, New York. Mr. DuMond said that in the next decade, Overture will acquire as many as 10 boutique firms with between $250 million and $2 billion in assets under management.
Overture takes majority interests - or even 100% stakes - in midsized asset managers and then gives back significant equity to principals, sometimes over a period of time. Overture will provide centralized services for its companies, such as marketing, distribution, systems and financial reporting, leaving money managers free to do what they do best - manage money.
"This space has a lot of upside potential. By taking well-regarded firms which grew their businesses almost by referral, we will help them overcome issues like bad markets, succession, the need for a more diversified client base and revenue stream. We'll add operating leverage and distribution they could never get on their own. Most firms this size are lucky to have one marketer. With Overture, they'll have access to a full marketing department," Mr. DuMond said.
