AG Asset Management, the traditional equity affiliate of Angelo, Gordon & Co., is closing.
The managers core equity portfolio management team is slated to join Evercore Asset Management and its 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 P&I Daily, 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, Evercores managing principal, marketing & client service, confirmed that AG Asset Management managing directors Christopher J. Fasciano and Timothy D. Buckley, and directors Michael P. Evans, Susan S. Hager and Ray Lewis will join Evercore. According to eVestmentAlliance, AG Asset Managements core team had roughly $250 million in client assets under management as of Sept. 30.
Neither Jack Feiler, Palisades 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.
AG Asset was known as FortsmannLeff before it was acquired by Angelo, Gordon in May 2006.
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.