50 South Capital Advisors, the investment advisory subsidiary of Northern Trust is to acquire the hedge fund solutions provider Aurora Investment Management, a wholly-owned subsidiary of Natixis Global Asset Management.
The addition of Chicago-based Aurora will offer clients of both firms access to an expanded global alternative investment platform with the size and resources to deliver comprehensive hedge fund, private equity and real asset solutions.
“This strategic acquisition supports our objective as a trusted asset manager to provide solutions that are suited to client investment objectives and risk tolerances,” says Northern Trust Chairman and Chief Executive Officer Frederick H Waddell (pictured). “We are pleased to take this step and significantly grow our alternative investment capabilities to help investors meet the challenges of high volatility and persistent low yields in financial markets.”
“We share similar values and closely-aligned investment philosophies with 50 South Capital and are thrilled to be joining forces,” says Roxanne Martino, CEO of Aurora. “We believe this combination will create highly complementary investment capabilities, offering a wider range of options to our clients and a strong platform for growth.”
For nearly 30 years, Aurora has been a leading manager of hedge fund strategies, with expertise in seeding and co-investing with investment managers and a strong base of high net worth and institutional investors, including corporate and public pension funds, foundations and endowments, insurance companies and healthcare organisations. 50 South Capital, with a strong record of success in hedge fund and private equity investing, provides investment solutions to both high net worth and institutional investors. 50 South Capital’s relationship with Northern Trust allows it to focus exclusively on alternative asset management while leveraging the global resources and network of one of the world’s largest financial institutions. When finalised, the combination is expected to bring 50 South Capital’s total global alternatives platform to approximately $9 billion*.
“The addition of new clients and experienced professionals from Aurora strengthens 50 South Capital and deepens our expertise in providing alternative investment solutions that combine unique manager sources of alpha with strong risk management and oversight,” says Northern Trust Asset Management President Stephen N Potter. “Alternative investments are a strategic priority for Northern Trust, and we feel this combination strengthens our position in this competitive business.”
“The combination of these two industry leaders will provide both firms’ clients with a wider range of investment capabilities, which will help the business to grow and flourish,” says John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia.
50 South Capital is led by CEO Robert P Morgan, a 25-year veteran of the alternatives investment business, along with a dedicated team of highly experienced investment professionals. Aurora CEO Roxanne Martino, President Scott Schweighauser and Managing Director of Operations Anne Marie Morley will serve as Senior Advisors, to ensure a smooth transition of the business. Senior Aurora investment professionals will join the 50 South Capital team to drive an expanded alternatives investment program.
The combination will significantly expand 50 South Capital’s alternative investment capabilities with the addition of the Aurora investment team that averages more than 20 years of investment experience and brings new capabilities in emerging manager, co-investment and liquid alternatives strategies.
“As 50 South Capital grows, investors will continue to benefit from our position as a provider of alternative investment solutions, with the advantage of Northern Trust’s global resources and worldwide client base of institutional and high net worth investors,” says Morgan.
The acquisition is subject to customary closing conditions and is anticipated to close in the third quarter of 2016. Terms of the deal have not been disclosed.
