Rosemont Roundtable: Exploring the Business of Investment Management – Details, episodes & analysis

In this episode of Rosemont Roundtable, Chris Banholzer joins colleagues Chas Burkhart and Brad Mook to examine the fragile state of long-only, active boutique managers. They explore causes behind widespread AUM declines and firm closures, discuss leadership and ownership challenges, and share insights on building more resilient, sustainable boutiques.

In this episode of Rosemont Roundtable, Chas sits down with Nikki Kraus, CEO of Strategic Investment Group, a leading $31B pure-play OCIO for endowments, foundations, and other institutions. With over three decades of experience advising investment committees, Nikki shares her perspective on the evolution of the OCIO model, the sustaining principles that drive Strategic’s success, the company’s client centricity, its culture and organizational approach, and its ownership architecture. 

In the latest episode of the Rosemont Roundtable: Exploring the Business of Investment Management (formerly known as Global Investment Leaders), Brad Mook sat down with Wes Gallup, managing director and chief operating officer of Cary Street Partners, an independent wealth management firm based in Richmond, Virginia, with more than $8 billion in assets under management.* Their conversation centers around the evolution of Cary Street and offers insights into industry trends, growth strategy and technology's role in modern wealth management firms.

Specifically, Brad and Wes discuss:

• How Cary Street pivoted from a corporate advisory firm to a full-service wealth management firm after an acquisition in 2007.
• The firm's focus on both organic and inorganic growth, including prioritizing acquisitions that enhance capabilities and improve client service over raw scale.
• Managing growth by providing advisor independence while maintaining a cohesive brand.
• The importance of technology adoption for operating efficiencies and staying competitive in the modern wealth management industry.
• The potential for AI and emerging technologies to enhance productivity, even while recognizing the irreplaceable value of human relationships in the advisor-client dynamic.

Overall, the conversation underscores the importance of client-centricity, organic growth and thoughtful implementation of technology to achieve long-term success in the evolving industry landscape.

All episodes of the Rosemont podcast—including Rosemont Roundtable and Global Investment Leaders—are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.

*As of March 25, 2024, Cary Street Partners manages approximately $8 billion in assets. 

In this episode of the Global Investment Leaders podcast, Chas Burkhart, CEO of Rosemont, sat down for a conversation with Jan van Eck, CEO of VanEck, a roughly $90 billion* multi-asset firm headquartered in New York. Founded in 1955 by Jan's father, John van Eck, VanEck has gradually diversified, with the ETF business becoming dominant since its inception in 2006. Their conversation covers Jan's leadership evolution, the importance of culture and building strong teams, the strategic focus on the ETF business and the importance of being able to pivot in the rapidly changing financial services space.

Specifically, Chas and Jan discuss:

• The evolution of VanEck over its nearly 70-year history, from a pioneering gold business to a diversified provider of niche investment offerings.
• Jan's role as CEO and the growth of VanEck as a leader in the industry, including the importance of focusing on personal and organizational strengths.
• The culture at VanEck, highlighting the importance of hiring industry experts and the resilience fostered by the tolerance for cyclicality in resource-based businesses, leading to a remarkably low turnover rate.
• VanEck's approach to growing and pivoting the ETF business, including their two phases of product design and the current shift towards a more distribution-oriented industry.
• The role of performance in driving investor sentiment and flows, and how market direction, whether income or equity-oriented, plays a crucial role in decision-making.
• Identifying industry disruptors and VanEck's positioning in the cryptocurrency and blockchain space.
• The broader industry trend of consolidation through mergers and acquisitions, and the benefits of being a private, employee-owned company with a long-term perspective.

Overall, this episode highlights a business-minded leader who understands the importance of firm culture, building a strong team and taking strategic risks.

All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.

*As of February 7, 2024, VanEck manages approximately $90 billion in assets. 

In this episode of the Global Investment Leaders podcast, Rosemont’s Brad Mook sits down with Todd Briddell, chief executive officer and chief investment officer of CenterSquare Investment Management. CenterSquare is an employee-owned global real estate investment firm founded in 1987, managing over $14 billion in equity capital. The firm operates domestically and globally and offers a range of solutions for institutional investors.

During the conversation, Briddell sheds light on CenterSquare's evolution and how they navigated functional and ownership succession through a sale of the firm, a management buyout and rebranding.

Specifically, Briddell and Mook discuss:

• CenterSquare's commitment to thematic investing, bringing a macro view to the table, and the importance of a client-first mentality to meet client needs effectively.
• CenterSquare's ownership journey, starting as a founder-owned entity, being acquired by BNY Mellon in 2006, and executing a management buyout in 2018.
• Details on the ownership structure post-management buyout, emphasizing inclusivity and the participation of a larger group of individuals.
• CenterSquare's strategic position between large corporate-owned firms and smaller, founder-led entities.
• The significance of cross-fertilization within the organization and how teams are brought together to prevent silos.

Overall, the conversation offers valuable insights into CenterSquare's unique trajectory and broader lessons for small and mid-size firms seeking sustainable growth and strategic positioning in today's evolving landscape.

All Global Investment Leaders podcast episodes are available on Apple Podcasts, Spotify, Google Podcasts and more. Access episodes as soon as they release by subscribing today.

In this special year-end episode of the Global Investment Leaders podcast, Rosemont CEO Chas Burkhart and Rosemont Managing Director Brad Mook sit down to reflect on the industry trends and developments they observed this year. 2023 marks five years with Markel as the firm's permanent capital provider, and Rosemont has evolved from a legacy PE fund structure to a permanent capital approach. Brad and Chas discuss the benefits of long-term sustainability in contrast to the traditional exit-focused models.

Specifically, they discuss:

• The unique relationship they've built with Markel since beginning their relationship five years ago and the importance of alignment and shared values in a partnership.
• The evolving motives and agendas shaping investment decisions, emphasizing the importance of patience and understanding in fostering successful, long-term relationships.
• The industry focus on volume and valuation, and Rosemont's views on measuring success beyond traditional metrics.
• The state of the marketplace, opportunities in wealth management alternatives and the role of smaller players in the industry.
• How Rosemont has continued to refine the characteristics and values that make potential partners a good fit.

Burkhart and Mook also share exciting firm updates, including the addition of new team member Chris Banholzer, as well as a pending investment.

All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.

In the latest episode of the Global Investment Leaders podcast, Chas Burkhart, CEO of Rosemont, sits down for a conversation with Kane Brenan, CEO of TIFF Investment Management. TIFF offers outsourced CIO (OCIO) and private equity investment solutions primarily to endowments, foundations, and other charitable organizations, and manages or advises on $8 billion in assets*. The conversation between Chas and Kane revolves around TIFF's structure, investment philosophy and the challenges and opportunities in the industry.

Throughout this episode, Kane and Chas discuss:

• Differentiators in the Competitive OCIO Space: The three main differentiators that set TIFF apart in this field
• Leadership Approach: His approach to his role as CEO and how he divides his time between strategy and direction, team development and mentoring, client engagement and investment activities
• Long-Term and Short-Term Strategy: TIFF's evolving short-term and long-term strategies and how they meet the needs of their diverse client base
• Transition to Employee Ownership: TIFF's conversion to an employee-owned public benefit limited liability company, the benefits from the conversion and how it cultivates a more forward-looking company culture to attract talent
• Equity, Active Returns, and Illiquidity: The importance of equity as a cornerstone of portfolios, the value of active returns and the role of illiquidity in investments, particularly in private equity and venture capital markets
• Sales, Marketing and Client Service: The often-overlooked role of sales, marketing, and client-facing positions within the OCIO industry

All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.

*As of June 30, 2023, TIFF managed approximately $8 billion, including committed capital, on behalf of its members.

In the latest episode of the Global Investment Leaders podcast, Brad Mook, managing director of investments at Rosemont, sits down with Phillip Cook, managing partner and chief investment officer of SouthernSun Asset Management. SouthernSun is an employee-owned boutique equity manager based in Memphis, Tennessee, with just over $1 billion in concentrated U.S. small and mid-cap strategies. The firm was founded in 1989 by Phillip's father, Michael Cook, and has maintained the same philosophy and process since the very beginning.

During the discussion, Phillip openly shares insights and anecdotes from his career at SouthernSun, recalling both the missteps and successes he faced along the way. He also speaks on the decades of strategy and planning that culminated in SouthernSun becoming entirely employee-owned and successfully transitioning leadership of the firm across generations - both notable achievements.

Throughout this episode, Brad and Phillip discuss:

• SouthernSun's unique investment-sourcing approach, which involves hands-on research, site visits and an in-depth understanding of an industry's value chain.
• SouthernSun's ownership history and the thought process behind the firm's decision to buy itself back from AMG in 2020 to become 100% employee-owned. 
• The importance of trust and transparency in building authentic relationships with coworkers, management teams, clients, prospects and industry experts.
• SouthernSun's distinct approach to investing and why it remains focused on U.S. small and SMID-cap strategies.
• The recent management changes at SouthernSun and how the firm navigated the challenges associated with succession planning.

All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.

In the latest episode of the Global Investment Leaders podcast, Chas Burkhart, CEO of Rosemont, engages in a thought-provoking conversation with Earl “Trip” Samson III, co-managing partner of Landmark Management, LLC, a NYC-based, multi-family office with approximately $5 billion in assets under management. The conversation revolves around Landmark's transition to next-generation leadership and the strategic partnership between Landmark and Rosemont, which was announced in June 2023.

Throughout this episode, Trip and Chas discuss:

• How Landmark has structured its team to address the complex needs of the ultra-high-net-worth families it serves
• How planning early and over a long period of time can lead to greater comfort and optimize outcomes
• How the multi-generational concerns of Landmark's clients have influenced Trip's approach to succession planning and long-term sustainability
• The role Rosemont has played in the broader context of the firm's long-term plan over the past six years and the future of their relationship
• The importance of prioritizing people and philosophical alignment over liquidity and valuation when considering the firm’s long-term continuity 

Overall, this episode provides a glimpse into what a deliberate, thoughtful approach to succession planning looks like, as well as the importance of creating a solid foundation to ensure the best possible outcome for clients. 

All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.

In a recent podcast by Rosemont Investment Group, the hosts discussed two key topics: succession planning and business sustainability in the investment industry.

The podcast began with the observation that it has been a busy half-year for Rosemont, particularly with the closing of its recent investment in Landmark. As a result, Chas and Brad took a moment to reflect on their progress midway through the year.

One of the prominent themes discussed in the podcast was the growing attention being paid to succession. While succession planning has always been a part of Rosemont's focus, they noted an increase in conversations about this topic over the past year.

During the podcast, Brad and Chas emphasize the following key points:

• The challenges faced by investment businesses in terms of sustainability due to industry evolution and increased competition.
• The complexity of investment decisions for allocators, intermediaries and clients who have numerous options to choose from.
• The growing recognition among managers of the need for sustainability and the consideration of proactive or reactive measures.
• The various risks involved with lack of succession planning, including unforeseen tragedies, incapacitation and chronic underperformance.
• The expected elimination of excess capacity and mediocre performers in the industry within the next 5-10 years.
• The impact of the next generation's lower risk appetite on their willingness to take on equity ownership, considering factors like tax burdens, feasibility, and debt levels.

In conclusion, the hosts expressed their belief that the investment industry will witness a surge in corporate activity and M&A (mergers and acquisitions) as businesses seek to address succession challenges and enhance sustainability in an increasingly competitive landscape.

All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, 

Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.