50 South Capital Advisors on Monday was spun out of Northern Trust Corp. into a separate investment boutique to manage private equity and hedge funds of funds.
The bank moved all 24 employees and the $3 billion of discretionary assets and $1.3 billion of assets under advisement from Northern Trust alternatives group into the bank's new subsidiary. Robert P. Morgan, managing director, is the CEO of 50 South Capital.
50 South Capital will continue to focus on customized multimanager portfolios using small- to midsize private equity and hedge fund managers, Mr. Morgan said.
The genesis for the spinout of the alternatives group was prompted by Northern Trust's review of the Volcker Rule of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Mr. Morgan said.
While the bank didn't have to divest its private equity and hedge funds-of-funds business, “we thought that separately branding the alternatives business would be appealing to institutional investors,” Mr. Morgan added.