With Taft-Hartley union clients making up the bulk of Segal Advisors' business and Rogerscasey focused on clients in corporate, not-for-profit, higher education and endowment markets, the combination of the two firms is “a perfect way to expand our reach,” John DeMairo, president and CEO of Segal Advisors, said in a telephone interview. Mr. DeMairo will retain those titles at the combined firm.
Terms of the deal weren't disclosed.
The deal, which has already closed, will create a combined entity, Segal Rogerscasey, with more than 325 clients worldwide and advisory assets “approaching $400 billion,” according to a news release from Segal Advisors.
Tim Barron, CEO of Rogerscasey, will be chief investment officer of the combined entity.
Rogerscasey's strong reputation for research and its investment solutions business will likewise enhance Segal's existing capabilities, Mr. DeMairo said. This isn't the kind of deal that will depend on slashing costs and redundancies to create value, he added.
Mr. Barron said Segal's strengths on the actuarial side, its asset-liability management expertise and offerings on the benefits side for 401(k) clients will bolster what his team has been able to offer clients in managing liabilities.
For Rogerscasey employees, meanwhile, the deal will open up opportunities for them to become equity holders in privately held Segal Rogerscasey. According to SEC filings, more than 75% of Rogerscasey's equity had been owned by Boston-based private equity firm Capital Resource Holdings.
Mr. DeMairo said a number of Rogerscasey veterans are coming over to Segal as senior vice presidents and principals, and “all of them at Segal will have the opportunity to become owners of the firm.” He didn't say whether all Rogerscasey employees will be offered jobs at the combined firm.
Messrs. Demairo and Barron said the initial reaction from clients of both firms has been very positive.
Segal Rogerscasey will have its headquarters in New York. It will have offices in Atlanta, Boston, Chicago, Cleveland, Houston, Los Angeles, Toronto, Ireland and Darien, Conn., where Rogerscasey was based.