When John Schneider launched JS Asset Management earlier this year, eight staffers from another company were right beside him. They still are.
Stellate Partners LLC, Charlotte, N.C. — formed late last year by Paul Greenwood and John Mathai — helps long-only money managers start and run their own firms, in exchange for a minority interest varies from deal to deal, with a 30% target.
Mr. Greenwood, a principal of Stellate, is one of three marketing executives helping JS Asset Management, West Conshohocken, Pa. He has his own investment consulting firm in Tacoma and was director of U.S. equity at Russell Investment Group, Tacoma, Wash., until June 2004. Mr. Mathai was director of marketing at Charlotte Capital in Charlotte until early 2004.
Stellate has also supplied JS Asset Management with six other staff members who cover areas such as marketing, trading and compliance remotely from North Carolina."The big selling point is the freedom to manage the business independently," Mr. Greenwood said. "Many of the managers (we talk to) are sick and tired of having to manage more money than they think they should or spend time in meetings that have nothing to do with managing money."
Mr. Schneider, for example, oversaw $12 billion in equity assets while with PEA Capital LLC, a division of the Allianz Group that manages several PIMCO mutual funds. He was portfolio manager of the PIMCO PEA Value and Renaissance Funds for five and six years, respectively. His new firm, by contrast, has $60 million under management from five clients so far, with another $10 million expected soon.
"Most of the (companies) that do what Stellate offers tend to want majority ownership," said Mr. Schneider, who is president and chief investment officer. "You'd be working for someone else."