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MONTHLY NEWSLETTER: JULY 2019

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MONTHLY NEWSLETTER: JULY 2019

2019

NEW MANDATES AND ALLOCATOR

NEWSLETTER

As an executive recruiter, I work with a wide range of alternative investment firms to conduct searches for potential

candidates, with a focus on marketing or fundraising professionals. That means I get a first-hand look at trends in

hiring and fundraising practices across the industry. Which types of candidates rise to the top of the list? Which

strategies are the most popular among investors? Which geographic regions are growing the fastest? What sort of

lock-ups or NDAs are common in employer agreements?

To answer these sorts of questions and cast a light on the sometimes-opaque recruiting process, I decided to start this

monthly newsletter to share my insider view on the biggest trends reshaping the alternative investment industry. For

this inaugural newsletter, the first trend I want to discuss is the increased focus on gender diversity across the industry.

It’s no secret that men tend to have a dominant share of the jobs in finance, and especially in the alternative

investment industry. While the gender ratio is slowly getting better, the numbers still paint a clear picture. Consider

some of these stats:

➢ Women hold only 10% of all senior positions in private equity, and represent just 17.9% of the global workforce, a

figure that has remained unchanged for nearly two years. (source: Preqin)

➢ Women represented 19.3% of hedge fund employees globally in 2018, up slightly from 18.6% in 2017. When it

comes to senior staff, women make up 11.2% of the workforce. (source: Preqin)

➢ Across alternatives, women are primarily employed in investor relations but are still underrepresented at the senior

levels, comprising 53% and 34% of all workers in that function, respectively (source: Preqin)

➢ 83% of private equity firms say they want to add women to front-office roles, and 63% want to add women to

back-office roles. Among hedge funds, an equal 50% said they want to add more women to front-office and/or

back-office roles (source: EY)

➢ Many prominent investment firms have made public statements or launched initiatives aimed at recruiting and

promoting more women. Large private equity firms, in particular over the last six months, have become laser-

focused on diversity hiring as part of their overall mission to create gender-diverse distribution platforms. While

some may view these efforts as just a publicity stunt, the reality is that gender diversity is now a top priority for both

investment firms and allocators.

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◆ INTRODUCTION

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MONTHLY NEWSLETTER: JULY 2019

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MONTHLY NEWSLETTER: JULY 2019

Several of our clients, which include some of the largest private equity, private credit and hedge fund firms in the world,

have insisted as part of their search mandates that any candidate list include at least 50% diverse candidates. Several

clients have taken the extra step of conducting a diversity audit analysis after the search to ensure that at least 50% of

the shortlist came from a diverse background. Other firms have instituted quotas to make sure they hit a minimum

number of new diverse hires. This means that more diverse candidates are getting to the final round, and getting offers,

than ever before.

This shift in favor of more diverse candidates has massive ramifications for the future of distribution platforms. The “boys

club” of old where everyone operated in relatively small fundraising circles has given way to a new and more

sophisticated marketing operation that spans countries, languages and cultures.

According to a recent KPMG report, “Women in Alternative Investments,” 75% of investors plan to ask their alternative

asset managers to report diversity efforts, up from 60% a year ago, and 37% said they will require disclosure of diversity

statistics for all potential managers, up from 16% in the prior survey. This means firms that want to continue to retain

assets and attract allocations (read: all of them) need to take gender diversity very seriously in all hiring decisions.

To learn more and to support gender diversity efforts throughout the financial services industry, check out these three

organizations doing ground-breaking work: 100 Women in Finance, Girls Who Invest and Invest in Girls.

Thank you for all your continued support!

Sasha Jensen

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1. Group Health Foundation picks its first CIO, Muthu Muthiah, who is departing Emory University. Muthiah spent 2

years as MD with the $7 billion Atlanta-based college endowment, running a portfolio of similar size to Group Health’s.

2. CIO of Lloyd’s Private Bank, Markus Stadlmann, is leaving due to a structural shift. The bank is moving $89 billion of

its private client funds and a chunk of its staff to a joint venture with Schroders’ private wealth business.

3. Calamos Wealth Management hired a new CIO, J. Reed Murphy, who will manage the firm’s investment platform.

Prior to this, Murphy served as president and CIO at TC Wealth Partners.

4. Washington State Investment Board’s longtime CIO, Gary Bruebaker, will relinquish his role after more than 18

years. His pending retirement makes him the latest in a string of high-profile CIO departures at some of the nation’s

largest pension systems.

5. Employees Retirement System of Texas deputy CIO Sharmila Kassam left after more than a decade. She joined

Funston Advisory Services as a senior consultant.

◆ Q2 ALLOCATOR MOVES

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MONTHLY NEWSLETTER: JULY 2019

◆ Q2 ALLOCATOR MOVES

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6. Raymond James’ chief investment strategist Jeff Saut has retired. Larry Adam, CIO, now leads the investment

strategy team.

7. BlackRock’s global chief investment strategist, Richard Turnill, left the firm on May 1.

8. Kresge Foundation added a second investment director, Venus Phillips, to manage its $4 billion endowment. Most

recently, Phillips served as head of public markets at Fiat Chrysler Automobiles, where he oversaw the company’s

pension funds and employee savings plans.

9. Aristotle Capital promoted a senior investment professional, Catalina Llinas, to co-CIO to take over current co-CEO

and co-CIO, Gary Lisenbee. Lisenbee is relinquishing his CIO duties to focus on his co-CEO duties.

10. AdCap, a family office that lends to companies that don’t meet strict requirements for conventional lending, has

hired a new CIO, Chaya Slain. Slain joins after 11 years as director at Parkwood.

11. Morgan Stanley Alternative Investment Partners Private Markets CIO, Neil Harper, is leaving the firm.

Spokeswoman declined to comment on the departure or whether the firm had named a replacement.

12. Graystone Consulting, the institutional consulting arm of Morgan Stanley, created a new investment office and

tapped Jodie Gunzverg to act as lead institutional investment strategist. Gunzberg joins from S&P Dow Jones Indices,

where she was MD and head of US equities.

13. H. Ross Perot, multi-billion-dollar family office, tapped Och-Ziff Capital Management partner Boaz Sidikaro as its

new CIO. Former CIO Steve Blasnik ran the family office for more than 30 years and decided it was time to step away

from daily management of the portfolio.

14. Universities Superannuation Scheme has found a replacement for Roger Gray, its retiring chief executive and CIO,

Simon Pilcher. Previously, Pilcher was head of institutional fixed income and chairman of real estate at M&G Prudential.

15. Future Fund hired another deputy CIO, Sue Brake, who will control the fund’s portfolio strategy functions. Brake

joins from her senior consultant job with Willis Towers Watson.

16. EPIQ Capital Group has named Boris Albul as its new CIO. Albul was most recently head of risk management at a

global, multi-family office with $27 billion in AUM. Prior to that, he was portfolio manager at QSF Capital Management.

17. NextGen promoted Charles Wu to deputy CIO. The fund also named Gary Gabriel as its new CIO on the same day.

18. Cambridge University is recruiting a new CIO after Nick Cavalla, together with 3 other investment office leaders,

resigned last fall amid a heated debate about fossil fuel divestment on campus. The incoming CIO will oversee the

Cambridge University Endowment Fund.

19. Pennsylvania State University is reviewing candidates to replace John Pomeroy, the first and only CIO to ever run

its investment portfolio. Pomeroy retired after 17 years at the university’s $4 billion investment pool.

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MONTHLY NEWSLETTER: JULY 2019

◆ Q2 ALLOCATOR MOVES

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20. Pablo Bernengo was named CIO at AP3, Stockholm, the 340.7 billion Swedish kronor ($35.4 billion) pension fund.

Mr. Bernengo is CEO of money management firm Ohman Fonder.

21. Alain Krief, previously CIO of Oddo Asset Management, will join Edmond de Rothschild Asset Management to

oversee fixed income capabilities.

22. Connecticut’s treasurer has named a permanent CIO for the state’s pension funds, tapping the longtime interim for

the role, after two years of uncertainty. State Treasurer Shawn Wooden tapped Laurie Martin as the permanent CIO

for the $35.5 billion Connecticut Retirement Plans and Trust Funds (CRPTF), after she held the role on an interim basis

for the better part of two years.

23. Sonja Laud was named CIO at Legal & General Investment Management. Ms. Laud replaces Anton Eser, who has

been CIO since 2017.

24. Erik Goris was named CIO of the General Pension Fund of Aruba. Mr. Goris was previously chairman of Volo

pensioen, PGGM’s defined contribution plan.

25. Viking Global Investors co-CIO Ben Jacobs is reportedly leaving the hedge fund after 10 years. Jacobs, 38, has

been "edged out,.” Jacobs started as an analyst and "consumers guy" at Viking but may have been the victim of losing

oil wagers. Ning Jin now serves as the firm's sole CIO.

26. Waddell & Reed Financial has hired a new CIO. Daniel Hanson joins from activist investment firm JANA Partners,

where he most recently served as the head of impact investing.

27. Megan Hammond has joined University of Michigan’s investment office as managing director of investments. She

is heading up the natural resources portfolio and the real estate portfolio for the $12.2 billion endowment. Michele

Everard, who has held that position and has been with the investment office for 38 years, is leaving at year-end.

Hammond had previously been at Dartmouth College as managing director of real assets.

28. Lorrie Tingle left Mississippi Public Employees Retirement System on June 30 where she had been chief investment

officer. Andrew Hoeniges, the deputy CIO, is now serving as interim CIO.

29. Nobel Gulati has been appointed non-executive director at Pictet Asset Management. Earlier this year, he retired

from Two Sigma after 12 years. Gulati also serves on the executive board of Wharton Customer Analytics Initiative.

30. Gregg Bunn has joined Citadel as head of central funding and counterparty strategy. He had previously been at

Deutsche Bank for 20 years, most recently as managing director of global head of prime finance.

31. Christophe Herpet has replaced Gilles Dauphine as global head of AXA Investment Manager’s fixed income unit in

Paris. He will oversee AXA’s fixed income portfolios. Herpet joined AXA IM in 2004 as senior portfolio manager on the

hedge fund and structured finance team. In 2010, he joined the fixed income team where he managed fixed income

mandates and mutual funds. Meanwhile, Dauphine joined Amundi as head of euro alpha fixed income at the end of

May.

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MONTHLY NEWSLETTER: JULY 2019

◆ NEW RETAINED MANDATES FOR JULY

HIRING: $1 billion Private Equity & Secondary Firm

ROLE: Head of Marketing & Investor Relations

LOCATION: Toronto

DESCRIPTION: Highly technical marketer that understands secondaries and private equity investing.

Experienced in bringing order to a new fund and creating process and procedures.

HIRING: $1 billion Infrastructure Private Equity Firm

ROLE: Head of Marketing & Investor Relations

LOCATION: New York or California

DESCRIPTION: Our client is searching for an infrastructure specialist, an individual that knows where the

bodies are buried for high profile infrastructure projects (think JFK terminal 1). The role can be based

wherever the talent resides.

HIRING: $20 billion Credit Asset Manager

ROLE: Director/MD, Intermediary and PWM

LOCATION: New York

DESCRIPTION: UK based credit firm, which has world domination expansion plans is searching for a

extremely well networked individual to originate within this highly sought after investor channel. The location

could be flexible depending on the candidate and their suitability for the role.

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MONTHLY NEWSLETTER: JULY 2019

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OUR AWARDS

Jensen Partners

300 Park Avenue

14th Floor

New York, NY 10022

Highly commended as Best

Executive Search Firm 2017

by HFM Week

Nominated for Best Executive

Search Firm 2017 by Private

Equity Wire

Winner Alt Credit US Awards

2019Winner Best Recruitment Firm

2018 by Alt Credit Intelligence

Winner Private Equity Services

Award 2018 by Drawdown

Winner Best Recruitment Firm

2017 Alt Credit Intelligence

Winner US Hedge Fund Services

Awards 2016 by HFM Week