Nuveen Appoints William Huffman as CEO, Replacing José Minaya

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Nuveen has announced the appointment of William Huffman as the firm’s Chief Executive Officer. Huffman, who will chair Nuveen’s executive leadership team and be a member of TIAA’s executive committee, replaces José Minaya.

With over 30 years of experience in asset management, Huffman recently served as President of Nuveen Asset Management and Head of Equities and Fixed Income. In this role, he led a team responsible for managing a global investment business with over $1 trillion in assets across equities, fixed income, municipal bonds, multi-asset, private equity, and financing for the Commercial Property Assessed Clean Energy (C-PACE) program, providing the firm’s clients with diverse capabilities and solutions.

“Bill’s unwavering dedication to the best interests of clients and the development of the firm’s strategy has had a transformative impact on Nuveen’s business and culture, driving growth and innovation over the past 16 years. I am delighted to welcome Bill to this position and am confident that Nuveen will thrive under his leadership. We are grateful for all of José’s contributions and wish him much success in the future,” said Thasunda Brown Duckett, CEO of TIAA.

As part of the firm’s executive leadership team since joining the group in 2008, Huffman has been at the forefront of Nuveen’s evolution and played a key role in increasing the firm’s assets under management to $1.2 trillion from the $800 billion it had in 2014 when TIAA acquired Nuveen. Among Huffman’s expanding responsibilities have been leading multiple major acquisitions and overseeing the investment teams responsible for managing over $1 trillion in both listed and unlisted markets.

William Huffman, now CEO of Nuveen, stated: “I am proud to take on the responsibility of leading Nuveen’s exceptional and dedicated team. We will continue to strengthen our position as a market leader in fixed income, offering clients enhanced capabilities in listed and alternative markets, and investing in our wealth and institutional businesses in key segments such as insurance and pensions. An increased international presence will enable Nuveen to serve its clients in new ways, building on the solid foundation of a diverse and stable business.”

According to the firm, Nuveen’s global operating model is designed to provide specialized investment capabilities across all asset classes, meeting the needs of clients worldwide and throughout various market cycles.

20 years of experience

William Huffman is the executive sponsor of Nuveen’s Philanthropic Steering Committee and the Culture and Inclusion Council, which is responsible for developing an inclusive culture for all associates. He led the acquisition of FAF Advisors (the former asset management division of U.S. Bank), Greenworks Lending, and Arcmont Asset Management, as well as the integration of numerous subsidiaries, including Nuveen Asset Management, TIAA Public Investments, TIAA Private Investments, Symphony Asset Management, NWQ Investment Management, Santa Barbara Asset Management, and Churchill Asset Management.

Before joining Nuveen, Huffman was CEO of Northern Trust Global Investments Limited. He resides in the Chicago area and serves his community as vice-chairman of the board of directors of the Boys and Girls Clubs of Chicago, and is also a member of the Rush System Trustee and the Cancer Advisory Council.

Brian Ruder and Dipan Patel, New Co-managing Partners and Co-CEOs of Permira

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Permira, a global private equity firm, has announced that Brian Ruder and Dipan Patel will become Co-Managing Partners and Co-CEOs, while Kurt Björklund will transition to Executive Chairman, starting September 1, 2024.

According to the company, Brian Ruder joined Permira in 2008 and currently serves on Permira’s Executive Committee, chairs the Permira Growth Opportunities Investment Committee, and co-chairs the Buyout Funds Investment Committee. “Since joining, he has been instrumental in building the firm’s Technology sector team, which he co-led until 2023, and has been involved in several of the firm’s most notable transactions, including Ancestry, Genesys, Informatica, LegalZoom, Lytx, Magento, McAfee, Relativity, Renaissance Learning, TeamViewer, and Zendesk,” they noted.

Dipan Patel, on the other hand, is Co-Head of Permira’s Consumer sector team and a member of the Buyout Funds Investment Committee and Permira’s Executive Committee. He began his career at Permira in 2009 in the Technology team before joining the Consumer team in 2018 and has been key in extending Permira’s long track record of consumer investments into the digital age. Dipan has worked on several transactions, including Adevinta, AllTrails, Ancestry, Axiom, Boats Group, Informatica, LegalZoom, The Knot Worldwide, Renaissance Learning, and Yogiyo.

Following this announcement, Kurt Björklund, Executive Chairman of the firm, stated, “Dipan and Brian have been strong leaders and vital contributors to Permira’s strategy, culture, and investment track record for over 15 years. They embody Permira’s values of collaboration, creativity, and integrity and have collectively worked on 22 investments across Permira’s sectors, representing approximately €17.5 billion of capital, including LP co-investments. Appointing Brian and Dipan as Co-Managing Partners marks the next chapter in our long history of successful leadership evolution and reflects our commitment to careful firm stewardship. I am excited to remain actively involved as Executive Chairman and to work closely with them as we continue to grow the firm and enhance performance for the benefit of our investors and our team.”

On their appointment, Brian Ruder and Dipan Patel, Co-Managing Partners and Co-CEOs of Permira, commented, “It is a privilege to be the next leaders of Permira, a firm that has been shaped by the thoughtful guidance of Kurt and previous Managing Partners. Permira’s strategy is to generate enduring investment returns by supporting and building exceptional businesses. Alongside Kurt, our partners, and colleagues in our global offices, we are excited to write the next chapter of our firm.”

Regarding Kurt Björklund, in 2008, he became Co-Managing Partner alongside Tom Lister, who retired in 2022, before becoming the sole Managing Partner in 2021. Over the past 16 years, the firm has expanded its investment focus and range of products in private equity and credit, nearly tripling the size of the team and raising eight private equity funds and over 30 credit vehicles in total, representing approximately €60 billion of capital.

Blacktoro Strengthens Its Advisory Business in the US With Efficient Portfolios, Says Its President

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BlackToro has made headway in the United States with an RIA model that advises clients solely to enhance their portfolios without conflicts of interest, Gabriel Ruiz, president and founder of BlackToro, told Funds Society.

The industry executive commented that the trend will increasingly be to charge for independent advisory services and focus on research and technology to improve client returns without conflicts of interest.

“If I don’t need to make transactions to earn commissions, I have more independence to do my job and improve my clients’ returns,” Ruiz explained.

According to the founder of BlackToro, “the greatest market need is to see efficient portfolios” for the benefit of the client.

Ruiz, who was the founder of Delta Asset Management and also worked for Santander, Scotiabank, and Raymond James, added that the advisory system is a scheme that favors transparency and loyalty to the client.

However, the BlackToro partner clarified that this is not a value judgment against broker-dealers and acknowledged that there are end clients with extensive financial knowledge who are interested in managing their portfolios without independent external advice and only need a broker-dealer to transact and offer specific investment products.

A Multi-Platform Service

BlackToro has several custodians as a possibility of more freedom for the client.

“Being multi-platform allows us to be broader in our offering, but you have to be generating value all the time,” Ruiz clarified.

The partners of BlackToro and their background in asset and wealth management have “a strong focus on investment selection analysis teams.”

According to Ruiz, the study for portfolio creation starts from a macroeconomic perspective and “from macroeconomics, we drill down thanks to our strong team of macroeconomists.”

BT VALO

Just a few days ago, BT Valo was formally registered as an RIA Investment Advisor.

BT VALO is a new company born from a strategic alliance between VALO | Banco de Valores S.A. and BlackToro, aiming to provide investment advice linking the financial markets of the US and Argentina.

The agreement with Banco de Valores is very positive for BlackToro because it has many decades in the Argentine industry and is a service bank, which makes it “very special and professional,” Ruiz added.

In addition, “it is a leader in what it does, debt issuance, trusts, and is a leading custodian of investment funds.”

“The partnership between BlackToro and VALO, which takes on the name BT VALO, is a Miami-based joint venture, with a 50/50 split between the two firms, where VALO handles commercial relationships and BlackToro manages the portfolios,” he concluded.

The World Is Experiencing Its Lowest Levels of Peace Since World War II

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Investors’ current concerns about geopolitics and political instability are entirely justified. According to the latest edition of the Global Peace Index (GPI), a study measuring relative peace worldwide by the international think tank Institute for Economics & Peace (IEP), the current state of peace is the most fragile since World War II.

The report shows that without joint and coordinated efforts, there is a risk of escalating existing conflicts and provoking new ones. Its main conclusion is that up to 97 countries have seen a decline in their levels of peace compared to last year’s edition, more than any other year since the creation of the Global Peace Index in 2008. Conflicts in Gaza and Ukraine were the main drivers of the decline in global peace, with conflict deaths reaching 162,000 in 2023.

Currently, 92 countries are involved in conflicts beyond their borders, more than at any other time since the creation of the GPI. Additionally, the global economic impact of violence increased to 17.5 trillion euros in 2023, representing 13.5% of the world’s GDP.

Two other key findings from the report are that exposure to conflicts poses a significant risk to government and business supply chains and that the degree of militarization recorded the highest annual increase since the creation of the GPI, with 108 countries becoming increasingly militarized.

The report details that 95 million people are refugees or internally displaced due to violent conflicts, and 16 countries now host more than half a million refugees. On the flip side, Spain is now the twenty-third most peaceful country in the world, having climbed seven places since last year, while North America is the region that has experienced the greatest deterioration in its peace levels due to increased violent crime and fear of violence. In contrast, the first military scoring system, driven by IEP, suggests that the U.S. military capacity is three times larger than that of China.

A Less Peaceful World

According to the GPI 2024, the world is less peaceful for the twelfth time in the last 16 years and worsens its levels of peace for the fifth consecutive year. In this regard, 97 countries in the world have deteriorated their records. The report concludes that many of the conditions that precede major conflicts are higher than they have been since the end of World War II. Currently, according to the report, there are 56 active conflicts in the world, the highest number since World War II. Moreover, they increasingly have a greater international component, with up to 92 countries involved in conflicts outside their borders, the highest number since the creation of the Global Peace Index.

The growing number of minor conflicts increases the likelihood of more major conflicts occurring in the future. For example, in 2019, Ethiopia, Ukraine, and Gaza were identified as minor conflicts. Currently, according to the report, there are 16 countries where more than 5% of the population has been forced to flee.

The Victims

Last year, according to IEP, 162,000 conflict-related deaths were recorded, the second-highest number in the last 30 years. The conflicts in Ukraine, with 83,000 deaths, and Gaza, with estimates of at least 33,000 until April 2024, caused nearly three-quarters of the deaths. In the first four months of 2024, conflict-related deaths worldwide totaled 47,000. If this rate continues for the rest of the year, it would be the highest number of conflict deaths since the Rwandan genocide in 1994.

Additionally, by mid-2023, more than half of all refugees under UNHCR’s mandate came from only three countries: Syria, Afghanistan, and Ukraine. In this regard, Syria is the state with the highest magnitude of displacement, where the impact and aftermath of the Syrian civil war have caused 56.7% of the entire population to be internally displaced or refugees.

“During the last decade, peace levels have declined in nine out of ten years. We are witnessing a record number of conflicts, increased militarization, and greater international strategic competition. Conflicts negatively affect the global economy, and business risks stemming from conflicts have never been higher, exacerbating current global economic vulnerabilities. It is imperative that governments and businesses worldwide step up their efforts to resolve numerous minor conflicts before they become major crises. Eighty years have passed since the end of World War II, and current crises urgently require world leaders to commit to investing in resolving these conflicts,” explains Steve Killelea, founder and executive chairman of the IEP.

It is noteworthy that Europe remains the most peaceful region in the world in the GPI 2024, hosting seven of the top ten ranked countries. However, it recorded a 0.24% deterioration in peace compared to last year. Of the 36 countries in the region, 13 improved and 23 worsened their level of peace. The main cause of this decline was the deterioration in militarization and the conflict between Russia and Ukraine. Consequently, European countries have re-evaluated their military spending and overall combat readiness.

The Chronic Conflict Between Ukraine and Russia

Regional conflicts like the war between Russia and Ukraine, according to IEP, illustrate the devastating human cost and complexity of modern warfare. The latest figures suggest that last year there were more than 83,000 deaths from internal conflicts in Ukraine alone, meaning that more than half of all deaths in 2023 occurred in this single conflict.

According to the report, the war in Ukraine has caused nearly 6.5 million refugees by March 2024. In fact, the migration of young Ukrainians is significantly impacting the country’s ability to recruit new soldiers. It is estimated that nearly 30% of the population are refugees or internally displaced, a figure that rises to nearly 60% for young people of both sexes.

As a result of the war, Ukraine’s militarization continues to increase, with deteriorations recorded in the indicators of armed forces personnel, military spending (% of GDP), and nuclear weapons. Without a foreseeable immediate end to the war, Ukraine has become the fifth least peaceful country in the world, only surpassed by Yemen, Sudan, South Sudan, and Afghanistan.

On the other hand, Russia’s overall peace level deteriorated by 0.28% last year. It now ranks 157th in the GPI, making it the seventh least peaceful country in the world in 2024. According to the report, this conflict is an example of a “forever war,” where prolonged violence becomes seemingly endless, without clear resolutions, exacerbated by external military support, asymmetric warfare, and geopolitical rivalries. The conflict between Russia and Ukraine has led many European countries to re-evaluate their military spending and overall combat readiness, with 30 of the 39 European countries recording a deterioration in this area last year.

 Tensions in the Middle East

The Gaza conflict has not only had a significant impact on the region but also on global peace. The conflict between Israel and Palestine escalated dramatically in 2023 following the terrorist attacks on October 7 and the subsequent military invasion of Gaza. Since then, more than 35,000 deaths and a severe humanitarian crisis have been recorded. The report details that Palestine experienced the fourth largest deterioration in peace in the GPI 2024, falling nine places to 145th. Israel, for its part, dropped to an all-time low of 155th place, the largest deterioration in peace in the GPI 2024. Ecuador, Gabon, and Haiti were the other countries with the greatest deterioration in peace.

The conflict has also had a significant impact on the media. According to this year’s edition of the Global Peace Index, media articles in Israeli media with negative sentiment towards Palestinians increased by 85% in early 2024, compared to 30% in 1999. Beyond the Israel-Palestine conflict, the Middle East region is in a delicate balance of forces. Syria, Iran, Lebanon, and Yemen are also in active conflicts, with increasing economic consequences and a high risk of open war. A further escalation of the conflict would have severe consequences for the global economy, potentially triggering a global recession. According to the report, Syria’s economy contracted by more than 85% following the start of the civil war in 2011, and Ukraine’s economy contracted by 29% in the year following the start of the conflict in 2022.

The Global Economic Impact of Violence

The report explains that the global economic impact of violence in 2023 was 17.5 trillion euros or 2,188 euros per person. This represents an increase of more than 145 billion euros compared to last year. This increase is largely driven by a 20% rise in GDP losses due to conflicts. Spending on peacebuilding and maintenance amounted to 45.602 billion euros, representing less than 0.6% of total military spending.

Violence and the fear of violence directly influence the economy, generating costs in the form of material damage, physical injuries, or psychological trauma. Fear of violence also alters economic behavior, primarily reducing the propensity to invest and consume. Spending on prevention, containment, and treatment of the consequences of violence diverts public and private resources from more productive activities towards protective measures.

Additionally, violence generates economic losses in the form of productivity deficits, foregone income, and spending distortions. The total economic impact of violence has three components representing the different ways violence affects economic activity: direct costs, indirect costs, and a multiplier effect.

Global Peace Levels

The report explains that Iceland remains the most peaceful country, a position it has held since 2008, followed by Ireland, Austria, New Zealand, and Singapore, which is in the top five for the first time. Yemen has replaced Afghanistan as the least peaceful country in the world. It is followed by Sudan, South Sudan, Afghanistan, and Ukraine.

The Middle East and North Africa (MENA) region remains the least peaceful. This

area is home to the two least peaceful countries in the world, Sudan and Yemen. Despite the tensions in this region, the United Arab Emirates recorded the greatest improvement in peace in the Middle East and MENA, climbing 31 places to 53rd position in 2024. Although most peace indicators have deteriorated over the past 18 years, there has been an improvement in the homicide rate, which decreased in 112 countries, while the perception of crime improved in 96 countries.

The US Alternative Assets Industry Wins a Battle Against the SEC

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On the path to increased investment in private assets, several American associations have just won a significant battle against the powerful regulator thanks to a court ruling that deems the SEC incompetent to introduce its Private Fund Adviser Rule (PFAR).

The successful legal challenge was brought by a group of industry bodies: the National Association of Private Fund Managers; the Alternative Investment Management Association; the American Investment Council (AIC); the Loan Syndications and Trading Association; the Managed Funds Association; and the National Venture Capital Association.

The PFAR, introduced in August 2023, aimed to promote transparency, competition, and efficiency “on behalf of all investors, big or small, institutional or retail, sophisticated or not.”

But the Fifth Circuit Court of Appeals concluded that the SEC lacked the legal authority to introduce these rules, which required, among other things, that SEC-registered managers provide investors with certain disclosures, quarterly statements on compensation, fees, expenses, and performance of fund advisers, and annual audits of each fund’s financial statements, as well as opinions or valuations on secondary transactions.

Additionally, the regulation prohibited preferential treatment or information to any investor regarding redemptions.

According to a report by Preqin, this judicial outcome will not only have consequences in the United States but will also impact the global alternative assets industry.

Reactions to a Decision That Could Be a Double-Edged Sword

The AIC called the PFAR “illegal, unjustified, and ultimately harmful to investors.” Drew Maloney, the association’s president and CEO, described the court ruling as “a victory for thousands of businesses across the United States that need capital to grow and millions of workers who rely on private equity and credit to strengthen their retirements.”

The Wall Street Journal celebrated the defeat of SEC Chairman Gary Gensler.

On the other hand, the President and CEO of the Investment Company Institute (ICI), Eric J. Pan, stated that “the Fifth Circuit’s decision overturning the SEC’s private fund adviser rule is a clear acknowledgment by the court of the serious issues that ICI has raised about regulation by hypothesis. We echo the court’s concerns that the SEC acted outside its mandate. As we await action on dozens of similarly overreaching SEC proposals, we hope the SEC will take the time to study this decision and pay more attention to the serious concerns expressed by the public and market participants on issues such as liquidity risk management, safeguarding, and outsourcing.”

However, Jennifer Choi, Executive Director of the Institutional Limited Partners Association, warned that without mandatory minimum standards for critical information on performance, fees, and expenses, LPs will have to negotiate terms “that should be common sense.” She was disappointed that the court did not recognize the SEC’s long-standing authority to protect private market investors.

Heather Heys, Vice President, and Michael Gallagher, Senior Associate, of Preqin’s Legal Insights team, suggest that LPs will now rely more than ever on their own legal and financial advice and understanding of standard market fees and terms in limited partnership agreements. And this, for many investors, could mean a steep learning curve.

Edmond de Rothschild Enters the Saudi Market With Watar Partners as a Local Partner and an Initial Infrastructure Debt Strategy With Snb Capital

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Edmond de Rothschild has announced its plans to establish a presence in Saudi Arabia in collaboration with Watar Partners, an independent financial services firm. This initiative includes the launch of an infrastructure debt strategy in the country, in partnership with SNB Capital, a leading Saudi asset manager. The local partner in the joint venture, Watar Partners, will provide a multidisciplinary financial services team experienced in advising a broad base of Saudi clients. Edmond de Rothschild will contribute its infrastructure debt team, which manages over €5 billion in assets across 18 countries.

As a first step, Edmond de Rothschild aims to establish a new infrastructure debt fund platform designed to play a crucial role in financing projects throughout Saudi Arabia. This aligns with the country’s Vision 2030 program, which sets ambitious goals for developing local infrastructure in key areas such as transportation, energy, energy transition, digital, social services, utilities, and the circular economy. This investment platform will provide additional liquidity to existing equity and senior debt instruments and will be structured alongside SNB Capital. “This partnership offers deep knowledge of the region’s financing needs and its ambitious multi-trillion dollar infrastructure program,” they noted.

Edmond de Rothschild and Watar Partners also announced the creation of a joint venture to expand Edmond de Rothschild’s expertise in infrastructure debt investment in the region. Scheduled for the second half of 2024, the joint venture will focus on offering infrastructure debt solutions and advisory services to Saudi family offices and institutional investors. It plans to open a local office in Riyadh in the second half of 2024 and hire local resources. The launch of the strategy and the creation of the joint venture are subject to obtaining the necessary regulatory licenses and approvals.

“I am extremely pleased to establish a presence for Edmond de Rothschild in the Kingdom of Saudi Arabia through this partnership with SNB Capital and Watar Partners. This is a logical step for our group, based on long-standing business relationships with the country. Edmond de Rothschild brings an excellent track record in infrastructure debt in Europe. I am confident that this experience will benefit the realization of the Vision 2030 program, which perfectly aligns with our mission to foster sustainable growth and development around strong roots and heritage. We look forward to contributing to the future development of the country’s infrastructure and increasing our long-term presence to serve this important market,” said Ariane de Rothschild, CEO of Edmond de Rothschild.

Following this launch, Rashed Sharif, CEO of SNB Capital, stated: “We are delighted to collaborate with Edmond de Rothschild as the investment house deepens its relationship with Saudi Arabia. As the Kingdom’s and Middle East’s largest asset manager, SNB Capital is poised to unlock growth opportunities in the infrastructure space, from transportation to renewable energies. We are confident in driving sustainable impact and creating a local growth engine that supports the ambitious goals of Vision 2030. Strategic international relationships that enable us to continue playing our role in fostering innovation and financial solutions are crucial to our strategic goals, and we value partners who share our vision for achieving lasting market development.”

Lastly, Abdulwahab A. Al Betairi, Managing Partner of Watar Partners, added: “We are extremely pleased to partner with one of Europe’s most renowned financial franchises. Edmond de Rothschild is a name that comes with a great reputation and heritage, as well as sophisticated investment expertise. I firmly believe that Edmond de Rothschild will bring the knowledge and experience we need to fulfill the plans of the Kingdom of Saudi Arabia’s Vision 2030 objectives.”

AI Raised Over $8 Billion in Funding Rounds in the US

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May was a significant month for fundraising in the US, with four rounds reaching $1 billion and AI companies securing over $7 billion.

According to a Crunchbase report, the ranking of the top ten new firms seeking growth financing was led by those implementing AI.

1. xAI

xAI, Elon Musk’s generative AI startup, officially announced its long-awaited fundraising, making it the second most valuable generative AI company in the world. The $6 billion round included investments from firms such as Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research, among others.

2. CoreWeave

Another significant AI-related funding round. CoreWeave, the AI cloud infrastructure startup, closed a $1.1 billion round led by Coatue, valuing the company at $19 billion.

3. Scale AI

Scale AI raised $1 billion in a round led by Accel, valuing the data annotation and evaluation startup at an astonishing $13.8 billion.

3. Wiz, $1 billion

The cloud security startup Wiz closed the largest cybersecurity round of the year so far, raising $1 billion with a valuation of $12 billion.

5. Motional, Autonomous Vehicles

Hyundai demonstrated its willingness to invest heavily in the Boston-based autonomous driving startup Motional. In May, the automaker agreed to invest $475 million directly into the startup.

6. Uniquity Bio, Biotechnology

Biotechnology also saw some significant rounds in May. The largest was for a new company launched by Blackstone Life Sciences, a unit of the private equity giant Blackstone Group, with a substantial $300 million investment.

7. Vercel, Developer Platform

Vercel, a platform that enables companies to develop web applications in the cloud, secured a Series E of $250 million with a valuation of $3.25 billion.

8. AltruBio, $225 million, Biotechnology

AltruBio secured a Series B of $225 million led by BVF Partners. The San Francisco-based startup is developing therapies for the treatment of ulcerative colitis and other immunological diseases.

9. BridgeBio Oncology Therapeutics, Biotechnology

Biotechnology experienced a significant spin-off in May when BridgeBio Pharma launched its subsidiary BridgeBio Oncology Therapeutics as its own company with $200 million in new funding.

10. Sigma, Analytics

The cloud analytics startup Sigma raised a Series D of $200 million co-led by Spark Capital and Avenir Growth Capital.

11. Zenas BioPharma, Biotechnology

Zenas BioPharma, based in Waltham, Massachusetts, raised a Series C preferred stock round of $200 million led by Delos Capital, New Enterprise Associates, Norwest Venture Partners, and SR One.

Advent International and a Subsidiary of ADIA Acquire a Minority Stake in Fisher Investments

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Fisher Investments (FI) has announced that Advent International (Advent) and a wholly-owned subsidiary of ADIA (Abu Dhabi Investment Authority) have agreed to make a minority investment in Fisher Investments, the namesake firm of Ken Fisher. According to the company, the investment by Advent and ADIA, ranging from at least $2.5 billion to $3 billion, values FI at $12.75 billion.

After the closing of this transaction, which is expected to occur by the end of this year, Ken Fisher will remain active in his current role as Executive Chairman and Co-Chief Investment Officer of FI, and the management led by CEO Damian Ornani will continue to drive the firm forward. “The investment will not affect clients, employees, or the daily operations of FI. The completion of the transaction is subject to certain approvals and the fulfillment of other customary closing conditions,” they state.

The announcement explains that this transaction was part of Ken Fisher’s long-term estate planning and allows FI, under the leadership of Damian Ornani, to continue operating as an independent wealth and asset management firm and private investment advisor. Ken Fisher, founder and Executive Chairman of FI, will sell personal stakes in FI to funds managed by Advent and ADIA. For Advent and ADIA, the deal was an opportunity for a long-term investment in one of the world’s largest investment advisors. Investors in Advent’s vehicles include funds managed by Lunate Capital Limited, Mousse Partners, and FI’s long-time largest institutional client, the National Pension Service (NPS) of South Korea. This is the first external investment in FI, as ownership was previously exclusive to family and employees. Once the transaction closes, Ken Fisher will retain the majority of effective ownership and voting shares exceeding 70%. No other FI investment transactions are contemplated. The investment in common shares does not include options or preferences over non-common shares and includes voting proportional to the effective ownership of the investors. After closing, David Mussafer, Managing Partner of Advent, will join FI’s board of directors.

“This transaction provides us with an independent track with truly exceptional institutional investors who can bring their wisdom, value our unique culture and goals, and want us to keep doing what we have always done, bigger and better, while pioneering never-before-implemented solutions to benefit our clients and employees,” stated Damian Ornani, FI’s long-time CEO.

Ken Fisher added, “This transaction addresses both estate and tax planning, while ensuring that FI will maintain its traditional culture, growth evolution, and dedication to exceptional client service. FI has been my life. While my health is excellent, this transaction with an atypically long holding period for a private equity transaction will ensure FI’s independence and private culture long-term in case something adverse happens to me. And we will have the support of world-class partners who understand us operationally and culturally and value who we are and will be.”

Regarding the transaction, David Mussafer, Managing Partner of Advent, declared, “We are excited to support one of the leading financial services brands that clients trust for their personalized approach to wealth management. Ken, Damian, and the rest of the management team have built a tremendous organization over the past 45 years. We are honored to partner with them to support the next phase of FI’s growth while upholding the unique culture that is fundamental to its success.”

JP Morgan Securities LLC and RBC Capital Markets acted as joint financial advisors, and Paul Hastings acted as legal advisor to FI in this transaction. Ropes & Gray served as legal advisor to Advent. Gibson Dunn served as legal advisor to ADIA.

Blackrock Launches Five New iShares Msci Climate Transition Aware UCITS ETFs

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BlackRock expands investor options with five new iShares MSCI Climate Transition Aware UCITS ETFs. According to the asset manager, this launch aims to provide access to leading companies in the transition to a low-carbon economy. It focuses on investing in companies based on their greenhouse gas emissions intensity relative to the sector and the measures they take to reduce emissions. Their expectation, based on their own survey, is that 56% of global institutional investors plan to increase their allocations to transition strategies in the next three years, with nearly half stating it as their top priority.

The range of funds offers investors tools to build equity portfolios that seek sector neutrality, using global and regional building blocks, while mitigating risks and capturing opportunities associated with the transition to a low-carbon economy. BlackRock believes this transition is a mega force affecting markets. In their view, the transition to a low-carbon economy involves profound changes unfolding over decades, reshaping production and consumption, and stimulating significant capital investment. BlackRock Investment Institute has identified several mega forces reshaping markets, including technological innovation, geopolitical fragmentation, and aging populations. BlackRock provides investors seeking to incorporate transition-related considerations into their portfolios with a broad range of options, both in active and index solutions.

“Innovation is central to BlackRock’s approach to developing products and solutions for clients as investors become more sophisticated in their investment goals. The transition to a low-carbon economy is set to drive significant capital reallocation as energy systems and technologies continue to evolve and develop. With the launch of the Climate Transition Aware range, we are expanding the variety we offer to clients seeking to mitigate investment risks and capitalize on the opportunities of this transition,” said Manuela Sperandeo, Head of iShares Product for EMEA at BlackRock.

The MSCI Transition Aware Select Index methodology includes companies that meet at least one of the following selection criteria: Science-based targets: Companies are selected if they have set one or more greenhouse gas emission reduction targets approved by the Science Based Targets initiative (SBTi). Green revenues: Companies are selected if they derive 20% or more of their revenue from green revenues. Emissions intensity: The index methodology ranks companies based on their greenhouse gas emissions intensity, provided they have published emission reduction targets. Subsequently, the index aims to select the top 50% of companies by sector.

The index methodology also excludes companies with “very severe ESG controversies” according to MSCI and those not complying with the United Nations Global Compact (UNGC) Principles. Companies involved in controversial weapons, tobacco, thermal coal mining, thermal coal power generation, and unconventional oil and gas extraction are also excluded. Within the Energy, Materials, Industrials, and Utilities sectors according to the Global Industry Classification Standard (GICS), additional exclusions are applied based on emissions intensity and those without targets or reporting. The exclusions of the fund range comply with the EU Climate Transition Benchmark (CTB) exclusion criteria.

Finally, Sebastian Lieblich, Managing Director and Head of Index Solutions EMEA at MSCI, added: “Investors are increasingly seeking data and tools to help them adapt their strategies to better manage the challenges and opportunities arising from the transition to a low-carbon economy. Clarity on companies’ commitments to reducing their carbon footprint through published targets, as well as their revenues from green businesses, is key in this process. The MSCI Transition Aware Select Index methodology can play a central role for investors looking to incorporate these parameters into their decision-making.”

Santander Private Banking Strengthens Its Dubai Office With Four New Hires

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In December 2023, Santander Private Banking revealed, through an internal memo, the opening of an office in Dubai led by Masroor Batin, the former Head of Middle East and Africa at BNP Paribas Wealth Management, in line with their interest in expanding their business in the United Arab Emirates. In this context, the entity has strengthened the Dubai team with the hiring of four new professionals over the past month: Jacques-Antoine Lecointre, Kamran Butt, Mustafa Asif Mahmood, and Fady E. Eid.

The most recent addition is Jacques-Antoine Lecointre, who joins the team as Operations Director at the Dubai International Financial Centre branch. Lecointre, with over 20 years of industry experience, comes to Santander from Swyt Solutions, a firm he co-founded. He has also held positions at BNP Paribas Wealth Management as Chief Operating Officer – Middle East, Bank of Singapore, and Barclays Wealth Management.

Other new hires include Kamran Butt as the new Head of Products and CIO for the Middle East, joining from HSBC Private Banking, and Mustafa Asif Mahmood as the new Executive Banker for Global NRI and International Clients. Like Lecointre, these two professionals join the branch at the Dubai International Financial Centre as part of the Santander Private Banking International team.

Lastly, a month ago, Fady E. Eid joined Santander Private Banking as the Head of Market for the Gulf Cooperation Council (GCC) region. “Delighted to join Banco Santander International SA (DIFC Branch) as Market Head GCC, based in Dubai. I look forward to working with Alfonso Castillo, Antonio Costa Ortuño, and Masroor Batin, and thank you for the warm welcome,” he stated on social media following his joining the entity. Eid, who began his professional career in 1990 at Merrill Lynch as First Vice President Investments, comes to Santander from Opto Investments, where he was CEO Middle East.

The Spanish entity’s interest in this region goes beyond Dubai. In March of this year, it announced its entry into the Qatari market with a representative office in Doha, led by Ziad El-Saigh, who joined the bank from Credit Suisse. “In Private Banking, we already have a leading global platform in investment flows between Latin America, Europe, and the United States. Looking ahead, we are developing key growth opportunities to expand our presence, such as in the U.S. domestic market and the Middle East,” the entity stated in its first-quarter 2024 earnings report.