Sage Advisory Services, a $23 billion investment manager based in Austin, Texas, has secured an injection of capital to assist its continued exponential growth.
The firm has seen its assets under management and assets under administration grow by more than 50% in the last five years and added more than $4.5 billion of client assets across the firm’s strategies in 2023 alone. Sage has 56 employees and offers taxable and tax-exempt fixed income, liability-driven investing, enhanced cash management, global tactical ETF asset allocation, and responsible investing.
It is looking to expand its retirement solutions, including tackling the decumulation challenge faced by clients.
Kudu Investment Management, a provider of capital solutions to asset and wealth firms has made a minority investment in Sage. The financial terms were not disclosed.
Sage was one of the first institutional investment firms to use ETFs in its strategies, back in 1998, two years after it was founded by Robert G. Smith III, its president and co-CIO, and partners.
"In Kudu we have found a strategic partner to sustain the next chapter of Sage's growth and development," Smith said. "In seeking a partner, it was important for us to preserve our unique culture, maintain management control, and further develop the talents of the next generation of leadership."
Smith will continue to lead the firm along with current executive team Thomas Urano, co-CIO; Robert Williams, chief investment strategist; Michael Walton, managing partner; and Robert Moser, managing partner.
The firm remains majority-owned by its employees.
Kudu, based in New York, has invested in 26 asset and wealth managers with collective investments of more than $115 billion as of September on behalf of individual and institutional investors worldwide. Its partners are White Mountains Insurance Group Ltd., Massachusetts Mutual Life Insurance Co. and Martello Re.
Rob Jakacki, Kudu's CEO, said Sage is an exceptional firm.
"Sage is that rare firm that balances vision with execution, as demonstrated by its host of cutting-edge investment solutions, impressive client roster, and history of being ahead of the curve on critical issues like responsible investing."
Chinese stocks have been flying for the past month. Should US wealth managers go along for the ride?
The investment giant said Social Security numbers, driver's licenses, and other sensitive information was compromised by a third party using newly established accounts.
The employee-owned hybrid firm's latest hire in Fairfax reportedly managed $285M at his previous firm.
The tech-driven alts platform will provide support to advisors seeking customized portfolio access for their high-net-worth clients.
Growing uncertainty and short-term volatility are weighing on RIAs, with nearly half seeing at least some likelihood of recession.
Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.
Morningstar’s Joe Agostinelli highlights strategies for advisors to deepen client engagement and drive success
