Nu Paradigm Investment Partners opened for business Wednesday, offering customized investment outsourcing and strategic consulting services to institutional investors, family offices and registered investment advisers.
The flexible approach allows Nu Paradigm to provide a spectrum of services from traditional investment consulting advice to complete portfolio outsourcing. A sliding fee scale helps clients that are using only the firm's consulting services save on fees.
“We have had many conversations with institutions as we set up Nu Paradigm and as a result, we believe many investors are paying far too much for the services they receive,” said Christopher DeMeo, co-founder, in an interview.
Investors should only pay full fees for full discretionary investment management, Mr. DeMeo stressed.
“Investors have learned that outsourcing is not a panacea when it delivers generic solutions without respect to the client's specific culture and needs,” Mr. DeMeo said in a company news release.
The new firm already is providing consulting advice with a view toward outsourcing to a public pension fund that Mr. DeMeo said he could not name for confidentiality reasons.
The co-founders, Mr. DeMeo and Russell P. O'Brien, bring 50 years of combined experience and institutional pedigrees to their new endeavor.
Mr. DeMeo was head of investments, Americas, at Towers Watson until he left in February to begin setting up Nu Paradigm. He was replaced by Steve Carlson.
Mr. O'Brien, who is also chief compliance officer, was director and senior member of business development and investor relations until March at alternative investment manager FLAG Capital Management. Louis Sciarretta, a partner and chief operating officer at FLAG Capital, could not be reached by press time to comment on Mr. O'Brien's replacement.
Messrs. DeMeo and O'Brien each spent a significant portion of their careers on the investment side at Russell Investments.