Horizon looking to expand following Altamont investment

Altamont Capital Partners' strategic investment in money manager Horizon Investments will allow Horizon to grow through acquisition and push its goals-based investing message out to a wider financial adviser audience, Horizon's chief investment officer said.

Terms of the deal, including the size of the Altamont investment, weren't disclosed in a news release Nov. 30 that announced the closing. The firms announced the deal in September.

"Horizon Investments has traditionally positioned (itself) as the leader in goals-based investment management, but this transaction will allow us to grow even faster," CIO Scott Ladner said in an interview, adding that goals-based investing is a process that focuses on individuals rather than institutions.

Horizon uses exchange-traded funds as a key part of its strategies, according to the CIO, who said ETFs account for more than half of its $7 billion in assets under advisement.

When it comes to acquisitions, Horizon is looking for investment managers that can bring "a different shade of investment management skill set that we don't currently have on staff," Mr. Ladner said.

"We're just starting to look at firms to invest in or acquire," he said.

John Drahzal, Horizon's president, added the title of CEO upon the transaction's closing. The core of Horizon's "long-tenured" executive leadership team remains in place, including Mr. Ladner, General Counsel and Chief Compliance Officer Matt Chambers and Chief Financial Officer Stephen Terry, the release said. Horizon founder and former CEO Robbie Cannon will serve as strategic adviser, where he will continue to play an active role in the firm's direction, the release said.

Altamont approached Horizon, "and we were receptive listeners," Mr. Ladner said.

"They have a great vision that was pioneered by Dave Odenath — who's now our executive chairman — as building a platform for a distribution-focused, goals-based investment management firm," he said. "That's where they saw the industry going, and they're using this investment as a platform for that vision."

The executive chairman role is a new position.

Horizon works primarily within the independent broker-dealer channel, Mr. Ladner said. "We don't play very much in the wirehouse channels, and we don't play very much in the independent (registered investment adviser) channel, though we do have some relationships there. So, this push would be to possibly expand to other distribution avenues that we don't currently play in."

Mr. Odenath, operating partner at Altamont, a private equity firm, worked closely with Mr. Drahzal and the Horizon leadership team during the past several months as they completed the transaction, the news release said.

"Their efforts will form the core of a strategy that will leverage new distribution approaches to bring Horizon's goals-based investment framework to a much larger marketplace," Mr. Odenath said in the release.