First Eagle Investments

Office address: 1345 Avenue of the Americas, New York, NY 10105
Website: www.firsteagle.com
Year established: 1864
Company type: investment management firm
Employees: 625+
Expertise: global equities, fixed income, alternative credit, real assets, private credit, high-yield municipal bonds, wealth preservation strategies, emerging markets, distressed assets, asset-backed securities, CLOs, risk management, long-term value investing, portfolio diversification strategies.
Parent company: First Eagle Holdings
Key people: Mehdi Mahmud (CEO), Michael Constantino (CFO), Jon Dorfman (managing principal), Brian Margulies (CIO), James Fellows (co-president), Melanie Dow (CAO), David O'Connor (general counsel)
Financing status: N/A

First Eagle Investments is a privately held asset management firm that caters to individuals, institutions, and financial advisors globally. As of September 2024, the firm manages $149 billion in assets with over 625 employees across nine locations. Headquartered in New York, First Eagle offers a broad range of investment strategies, including equities, fixed income, alternative credit, and real assets.

History of First Eagle Investments

First Eagle Investments was founded in 1864 in Europe by the Arnhold brothers to finance local businesses, including breweries. In 1928, the firm acquired Adler Bank in Switzerland, whose name Adler, meaning eagle, later inspired the company’s current name. The firm moved its headquarters to New York in 1937 and launched its first offshore fund in 1967.

In 1987, it introduced its first US-registered mutual fund and acquired a majority share in Société Générale Asset Management a decade later. By 2002, the company exited investment banking to focus entirely on asset management, renaming itself First Eagle Investment Management in 2009. In 2021, after acquiring private credit manager NewStar Financial, it rebranded and acquired Napier Park Global Capital, boosting its presence in alternative credit markets.

Products and Services of First Eagle Investments

The organization offers a broad range of investment products designed to meet the needs of individuals, financial professionals, and institutions. These offerings include:

• mutual funds: actively managed funds such as the Global Fund and US Value Fund
• private funds: tailored investment solutions for high-net-worth individuals and institutional clients
• institutional accounts: customized strategies for institutional investors with specific investment goals
• First Eagle Alternative Credit (FEAC): private credit and lending strategies aimed at generating alternative returns
• Napier Park Global Capital: focused on alternative credit, including collateralized loan obligations (CLOs) and credit funds

First Eagle Investments offers a wide array of investment capabilities across asset classes. The firm's approach emphasizes disciplined thinking and a global outlook to deliver real returns while managing risk for its clients.

Culture at First Eagle Investments

First Eagle Investments fosters a collegial, small-team environment where employees feel valued for the meaningful contributions they make. Staff members are highly motivated and tend to have long tenures, supported by the firm's independent ownership structure. It also offers a comprehensive benefits program, which includes:

• healthcare: medical, dental, vision, and wellness programs
• flexible work: hybrid work arrangements, casual attire, and home office equipment reimbursement
• family planning: adoption assistance, egg freezing, backup dependent care
• financial benefits: retirement plan, profit-sharing, and pre-tax savings accounts (FSA)
• learning and wellness: education assistance, life coaching, fitness reimbursements, and wellness programs

The firm is dedicated to building an inclusive, high-performing workforce by attracting, developing, and retaining diverse talent. They believe that diverse perspectives enhance innovation and lead to stronger client outcomes. Their DEI framework emphasizes mutual respect, inspiring employees from all backgrounds to contribute their best work, with key initiatives in these areas:

• human capital: policies and benefits to promote DEI in hiring and retention
• workplace culture: open communication and supportive environments where employees feel empowered to be themselves
• community engagement: partnerships with nonprofits through the First Eagle Investments Foundation
• supplier diversity: efforts to include minority- and women-owned businesses in service provider selections
• employee recognition: reflections on professional and personal experiences, like those shared during Women's History Month

First Eagle Investments’ corporate social responsibility (CSR) initiatives focus on positively impacting the communities in which they operate, the industry, and the broader world. Their commitment to excellence drives efforts to support nonprofit organizations, reduce their environmental footprint, and promote positive change. Over time, they have aligned their philanthropic activities with employee interests and sustainability goals:

• philanthropy: donated $11.5 million through the First Eagle Investments Foundation since 2012
• financial literacy: partnerships with five nonprofits, including Girls Who Invest and the Council for Economic Education
• research support: funds a postdoctoral fellow in the Translational Research Oncology Training Program at Memorial Sloan Kettering Cancer Center
• employee matching gifts: amplifies employees' charitable contributions through a matching gift program, supporting money, time, and goods donations
• environmental efforts: implemented office recycling, evaluated travel alternatives, and assessed building sustainability to reduce their environmental impact

The company has cultivated an investment-driven culture that values autonomy among portfolio managers to meet client objectives. First Eagle Investments prioritizes fundamental, bottom-up research to identify opportunities across global markets. Their investment philosophy focuses on protecting capital by avoiding overpaying for assets, rather than reacting to short-term market volatility.

About First Eagle Investments CEO Mehdi Mahmud and Key People

Mehdi Mahmud serves as president and CEO of the company and president of First Eagle Funds. Before joining the company, he was CEO and chair at Jennison Associates, with prior roles at JP Morgan Investment Management and Credit Suisse Asset Management. Mahmud holds a bachelor's degree in electrical engineering from Yale University.

First Eagle Investments is supported by a team of key people who guide the firm’s operations and investment strategies:

• Michael Constantino serves as CFO, overseeing the firm’s financial strategy, accounting, and reporting, ensuring financial health and regulatory compliance
• Jon Dorfman is the managing principal and chief investment officer of Napier Park Global Capital, responsible for leading alternative credit strategies, including CLOs and credit funds
• Brian Margulies acts as chief infrastructure officer, managing technology and infrastructure operations to support the firm’s business functions and growth initiatives
• James Fellows serves as co-president and chief investment officer of First Eagle Alternative Credit, leading the division’s alternative credit strategies
• Melanie Dow serves as chief administrative officer, handling the firm’s administrative operations, human resources, and overall business efficiency
• David O'Connor is general counsel, providing legal oversight and guidance on regulatory matters and corporate governance at First Eagle Investments

The Future of First Eagle Investments

First Eagle Investments is looking towards growth in alternative credit, particularly high-yield municipal bonds, with a fund reaching $1 billion in just five months. The firm’s expertise in managing risk and navigating complex credit markets positions it well to meet the needs of institutional clients seeking higher returns. This strategic emphasis on alternative credit will be a key driver of the company’s future investment approach as it continues to adapt to market shifts and client demands.

First Eagle Investments has seen strong performance in its gold-focused strategies, with gold outpacing the S&P 500 in 2024. Portfolio manager Max Belmont emphasizes gold’s value as a hedge during times of inflation and rising debt. As economic uncertainty grows, First Eagle’s expertise in gold investing strengthens its appeal for clients seeking stability and diversification.