Rogerscasey goes retail, inks deal with wealth manager
Institutional-investor consultant Rogerscasey has reached an agreement to provide clients of wealth advisory firm Lowenhaupt Global Advisors LLC with investment management services and another layer of due diligence.
Institutional-investor consultant Rogerscasey has reached an agreement to provide clients of wealth advisory firm Lowenhaupt Global Advisors LLC with investment management services and another layer of due diligence.
Rogerscasey, one of the nation’s largest institutional-investment consulting firms, is responsible for more than $250 billion of assets for some of the largest institutions in the United States, according to a statement announcing the agreement. This is the first arrangement of its kind for the firm with a non-institutional client.
For Lowenhaupt, which manages more than $800 million in assets for wealthy families, the arrangement was a reaction to the financial crisis and the subsequent blowups across the industry, such as those at American International Group Inc., Bernard L. Madoff Investment Securities LLC and Lehman Brothers Holdings Inc.
“It’s a good move for our clients,” chief executive Charles Lowenhaupt said in an interview.
“Part of what I think we’ve learned over the past few years is that due diligence is the gold standard. At the end of the day, if you don’t have good custody and good security, you don’t do well,” Mr. Lowenhaupt said.
“After watching what’s gone on in the investment world for two years, we concluded that the depth required for due diligence is one that no family office can build. You need the assets to build the infrastructure.”
Rogerscasey also follows “many more managers than any one company could hope to follow,” which is helpful when a client is looking for a specialized investment strategy to complement its portfolio, Mr. Lowenhaupt said.
Lowenhaupt clients will be able to choose whether they use the resources at Rogerscasey, and the cost will be built into fees paid to the firm, he said.
Some families may choose not to take advantage of the relationship, as many already have relationships with other investment consultants, Mr. Lowenhaupt said.
Terms of the agreement weren’t disclosed in the release, and he declined to provide any details, beyond saying that it is a “long-term relationship” between the firms.
E-mail Hilary Johnson at [email protected].
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