The Rohatyn Group (TRG), a US-based specialised asset management firm focused on emerging markets, has acquired the Alternative Emerging Markets multi-manager (AEM) business of Lazard Asset Management.
The acquired business allocates capital to emerging and frontier market investment managers.
AEM portfolio managers Kit Boyatt and Christian Frei, along with their investment team, will join TRG with immediate effect.
TRG, founded in 2002, has did not disclose the terms of the transaction.
TRG said that the AEM business will be a strategic fit with its focus on structural inefficiencies and special opportunities.
TRG chief executive Nicolas Rohatyn said: “We believe that each investor’s individual objectives and constraints demand a range of options to access the rich set of growth and alpha opportunities present in emerging markets.
“TRG has thus purposefully sought out thoughtful, non-traditional approaches to complement, or even replace, core allocations.
“Our new AEM team’s investment strategy offers a unique alternative to a conventional, benchmarked equity investment program that we find highly attractive.”
This will be the first time that TRG will offer a multi-manager product as an extension of its ‘global perspective, local insights’ philosophy.
Frei said: “As talent has migrated from sell-side and traditional asset managers to launch funds in local markets, the range of options available to investors has ballooned to over 500 emerging and frontier market-focused funds, managing in excess of US$200 billion.
“Using less high-profile specialist managers in markets that are culturally and structurally hard to penetrate provides us with an information edge that a large centralized firm located in a major financial center would find hard to replicate.”
According to TRG, AEM complements the company’s beyond-BRIC strategy with exposure to the larger emerging markets.
Boyatt said: “In our experience the vibrancy and flexibility of smaller, independent investment managers is particularly well suited to the persistent evolution of frontier and emerging capital markets.
“The Rohatyn Group marries the dynamism of these boutiques with the institutional foundation and standards of the firms where TRG’s leadership team built their careers. It is the ideal home for our approach.”
The Rohatyn Group has operations in Boston, London, Buenos Aires, Singapore, Rotorua, Mumbai, New Delhi, Montevideo, Lima, Mexico City, São Paulo and other cities.