OUR APPROACH

What do we believe, what do we look for, and how do we engage?

PHILOSOPHY

AS INVESTORS, WE ARE…

  • Passionately minority – Firms that are majority-owned and controlled by their active employees are most aligned with our ethos and, we believe, competitively advantaged.
  • Extremely long term – With no fund structure or intention to exit, we have no need or mandate to realize capital value. Our focus is long-term sustainability, and we think and act like permanent owners with a built-to-last mindset.
  • Highly aligned – We prefer bottom-line participation right alongside management shareholders, with no preferential treatment. We are in this together.
  • Supportive partners – We take a non-meddling, strategic-advisory approach, and we tailor our value-add to focus on your interests. We never take our position for granted.

CRITERIA

WE SEEK TO INVEST IN…

  • Wealth or asset management firms exclusively.
  • High-quality, sustainable businesses with annual cash flow of at least $5 million.
  • Companies with – or seeking – majority ownership among active employees.
  • People of high character who actively maintain a strong corporate culture.
  • Entities operating in Westernized regulatory environments.

ENGAGEMENT

HOW WE PARTNER…

  • We are equity investors only, and will generally invest $10-100m for initial ownership
    stakes ranging from 10-40%. We can be flexible on size and/or creative with deal structures.
  • We see valuation as a multi-layered issue, comprised of initial capital value, future capital value,
    ongoing knowledge and network value, and structural flexibility (e.g. earn-outs, dilution, etc.).
  • We provide ongoing financial support as appropriate (e.g., additional liquidity, ongoing equity transition
    support, follow-on capital, etc.).
  • How We Operate…

  • Collaborative, sounding board-style relationship with senior management Discretion is paramount.
  • Wide-ranging support tailored to our individual partner’s needs. Most often focused on prospect and intermediary
    introductions, M&A, corporate strategy & competitive positioning, operating & compensation structure, and recruiting.
  • Board representation; quarterly reporting and meetings; typical minority protections.

OUR DISTINCTION

Given our backgrounds, experience and day-to-day approach, we've honed a specialist's skillset. Our knowledge and network underpin our company and everything we do for our partners.

KNOWLEDGE

  • We are not financiers; we are focused industry experts, with decades of experience in a variety of functions…as researchers, advisors, allocators, operators and investors. The breadth and depth gives as a singularly unique perspective.
  • Rosemont’s predecessor firm—Investment Counseling—created the first and most renowned best practices study in the asset management industry, Competitive Challenges. In the three decades since—spanning more than 500 research clients, 400 management consulting assignments, and 30 investment transactions—we’ve built a massive reservoir of knowledge and awareness.
  • We have first-hand experience with investment processes and governance committees, including manager selection and portfolio construction for multi-billion dollar asset pools in institutional, advisor and high net worth channels.
  • As industry experts, we are regularly called on to speak at industry conferences and write for financial publications. Topics have included:
    • The Successful Investment Firm of the Future
    • State of the Industry: Issues Keeping the C-Suite Up at Night
    • From Trial to Triumph: Capital-Raising Case Studies
    • Competitive Challenges in the Investment Management Industry

NETWORK

  • Over the past 35 years we’ve cultivated a global network of relationships in the investment industry value chain, many on a first-name basis. Our connections span industry segments, asset classes and functional roles.
  • Our robust network primarily functions as an ongoing bi-directional informational and idea exchange. We are regularly approached with partnership, acquisition and lift-out opportunities. We meet regularly with allocators, gatekeepers and other centers of influence to stay current on buying patterns, fee structures, roles and responsibilities, etc. and we are frequently asked for best-in-class investment ideas and firm/people insights.
  • Our partners benefit greatly from this network through knowledge sharing and introductions. Over the years, our network has generated billions of dollars in capital allocations, numerous accretive acquisitions and bolt-ons, best practices sharing between our partners, hiring of key executives, and many other valuable outcomes.
FOCUSED, CONNECTED, ALIGNED: THAT’S ROSEMONT