Completion of acquisition of Strategic Investment Group by Northill Capital

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Mar 01, 2019, 03:30 ET

LONDON and ARLINGTON, Va., March 1, 2019 /PRNewswire/ -- Northill Capital ("Northill") and Strategic Investment Group ("Strategic") are pleased to announce today the closing of the acquisition by Northill of the majority equity interest in Strategic previously held by FFL Partners. Strategic's senior management and investment teams increased their direct ownership of the firm as part of the transaction, with further increases expected over time.

Strategic, founded in 1987 and based in Arlington, Virginia, is the largest independent investment manager dedicated to the OCIO sector, with AUM of over US$26 billion on behalf of its discretionary clients. OCIO services are a growing part of the investment management industry and Strategic, as a leader in this segment, provides high-quality, independent, customised solutions which are highly attractive to its pension, foundation, endowment, healthcare and sovereign wealth clients. Through its centralised, institutional investment process, the firm's approach combines active portfolio management, rigorous risk management and open architecture manager selection.

Northill's investment in Strategic is consistent with its strategy to invest over the long-term in high-quality active investment businesses that create a strong strategic and cultural fit. This transaction is Northill's sixth to date and sees the firm's AUM increase to over US$79 billion from US$53 billion at 31 December 2018.

The transaction, which was announced on 20 December 2018, was subject to obtaining client consents and satisfying other customary closing conditions. The transaction has since been approved by 100% of Strategic's clients.

Jon Little, Partner, Northill Capital LLP, said:
"We are pleased to have completed the acquisition of Strategic Investment Group, the gold standard independent investment firm in the OCIO/Solutions sector. The management team's increased ownership of the business is a strong vote of confidence in its future and that of the sector. We are looking forward to working with the firm's talented and passionate team as an owner alongside management and long-term supportive partner, to ensure that Strategic has the support and autonomy necessary to achieve long-term outperformance and sustainable growth."

Brian Murdock, Chief Executive of Strategic Investment Group, said:
"We are excited to announce the closing and are grateful for the overwhelming support of our clients in making this transaction possible. We are thrilled to be entering into this partnership with Northill, with whom we share a strong philosophical and cultural alignment. Northill provides a patient and permanent capital base and complete autonomy to manage our business and our investment process. The transaction also provides a mechanism to ensure cross-generational stability by increasing the equity ownership of the current and future leaders of our firm. In short, this transaction best positions us to deliver the service and long-term performance that our clients expect."

Contacts:
Northill Capital
Jon Little
Northill Capital LLP
+44 (0)207 016 4011

Gay Collins / Toto Reissland-Burghart
Montfort Communications
[email protected]
+44 (0)20 3770 7905 / 7907

Strategic Investment Group
Nikki Kraus, CFA
Managing Director, Global Head of Client Development
[email protected]
+1 703.243.4433

Notes to editors:

Northill Capital
Northill Capital is an independent, privately held asset management business, established in London in 2010, with substantial financial backing from interests associated with the Bertarelli Family. Northill's long-term strategy is to build a portfolio of high quality, specialist asset management businesses. Assets under management by businesses in which Northill owns a majority interest total approximately US$53 billion at 31 December 2018. Northill brings deep industry experience and expertise and the patient, long-term application of substantial private capital to support skilled investment professionals to develop their businesses.
Northill Capital LLP is authorised and regulated by the Financial Conduct Authority. www.northill.com

Strategic Investment Group
Strategic, founded in 1987 and based in Arlington, Virginia, is an OCIO pioneer, purpose-built to provide sophisticated, customized investment solutions to a select group of clients. Strategic offers customized investment solutions because no two institutions have the same objectives, core mission, strategic direction, and ability to bear risk. Strategic also understands the need to practice sound investment governance to avoid high manager turnover, lackluster performance, and excessive costs. Strategic has delivered for its clients, helping them achieve their objectives through experience, insight, discipline, efficiency, cost-consciousness, and sound governance. Over the past three decades, Strategic has built a client-centric, team-oriented culture based on these attributes which acts as the largest dedicated OCIO. From designing and implementing investment policies to providing a full-range of back office support, an OCIO handles the day-to-day tasks of investment management to allow clients to focus on their mission and strategic objectives. Operating at scale with significant operational investments made, Strategic has delivered compelling results across market cycles and made the successful transition to the second generation of its investment team. Acting as a seamless extension of clients' investment teams and staff, the firm provides comprehensive, customized fiduciary solutions for clients.
Strategic is registered as an investment adviser with the Securities and Exchange Commission. www.strategicgroup.com

SOURCE Strategic Investment Group