Its core equity portfolio management team, based in Boston, is slated to join Evercore Asset Management, and its New York-based growth teams will join Palisade Capital Management by Jan. 31, according to investment consultants who declined to be named.
Terms of the deals werent disclosed.
In a letter to consultants forwarded to Pensions & Investments, Dana C. Troxell Jr., AG Asset Managements president and CEO, said the decline in equity markets this year had set back the prospects of achieving appropriate scale for our firm over a reasonable period of time. One consultant, who declined to be named, said the markets plunge had left the boutique with about half of the $2.6 billion in client money it was managing at the end of 2007.
In a telephone interview late Monday, Mr. Troxell said: This was a difficult decision, but one we implemented in line with our culture of putting clients interests first. Were pleased to have been able to provide clients with a seamless option to continue working with the investment professionals theyve known for so long.
Gail S. Landis, managing principal, marketing & client service, with New York-based Evercore, confirmed that AG Asset Managements core equity team Managing Directors Christopher J. Fasciano and Timothy D. Buckley, and Directors Michael P. Evans, Susan S. Hager and Ray Lewis will join Evercore. She said the core team has an excellent track record, and shares a bottom-up, research-driven approach to portfolio management with Evercores value equity team.
According to eVestmentAlliance, AG Asset Managements core team had roughly $250 million in client assets under management as of Sept. 30, at which time it reported the firm was managing $1.84 billion.
Neither Jack Feiler, Palisade president and CIO, nor Bradley R. Goldman, the firms general counsel, responded to calls seeking comment. The growth equity team was managing about $1.6 billion as of Sept. 30, according to eVestmentAlliance.
In May 2006, Angelo, Gordon & Co. acquired AG Asset Management, formerly known as ForstmannLeff LLC, together with the firms management team. At the time, John Angelo, the CEO of Angelo Gordon, noted that institutional clients are driving a convergence of traditional, long-only investment managers with alternative investment managers.
In his letter to consultants, Mr. Troxell said the decision to close AG Asset Management would have no effect on the strong alternative investment management business of Angelo, Gordon & Co. or Angelo, Gordon Advisors.