With OM Asset Management PLC about to be free from its London-based parent Old Mutual PLC, the board of the Boston-based multiboutique manager is seeking new leadership to pursue a more aggressive growth strategy.
Peter L. Bain's resignation as president and CEO of OM Asset Management came as a surprise to many both inside and outside the firm. But OMAM's board and new interim CEO hope this move will help boost the company's growth, and merger and acquisition activity.
On June 29, OMAM announced that effective June 30, Mr. Bain would resign from his roles as president, CEO and director, positions he has held since 2011. James J. Ritchie, OMAM chairman, is serving as executive chairman and interim CEO.
"Peter has successfully accomplished his mission," Mr. Ritchie said in a news release announcing Mr. Bain's departure. "He has delivered on his mandates to reshape the business, develop the leadership team and achieve the company's listing on the New York Stock Exchange, which has enabled Old Mutual to substantially achieve its stated objective of exiting its ownership of the business."
Mr. Bain, in the news release, said: "I am very proud of what we've achieved over the last six years. We restructured the business to focus on affiliates with high growth potential, became a public company, completed a successful new affiliate acquisition and executed the sell-down process for Old Mutual PLC. I am happy to hand over the business in good shape."
Neither executive would comment beyond the news release.
The company is planning to ramp up its investment activity, "especially when it comes to adding new affiliates. We want to grow the company at a more rapid pace, possibly making minority investments where strategic," an OMAM spokesman said in an email.
Old Mutual has been reducing its stake in OMAM since 2014. This year, that process has accelerated so Old Mutual can completely sell off its ownership stake by the end of 2017.
After getting out from under the parent, a source familiar with OMAM who asked not to be named said the board was looking for new blood to help pursue a more aggressive agenda.
The news caught industry observers off guard. After all, Mr. Bain appeared to be looking forward to guiding the company forward after its scheduled parting with Old Mutual PLC.