FFL sells Strategic to Northill

Northill Capital has acquired Arlington, Virginia-based Strategic Investment Group, an investment manager focused on the OCIO sector. The seller was FFL Partners. No financial terms were disclosed.


LONDON and ARLINGTON, Va., March 1, 2019 /PRNewswire/ — Northill Capital (“Northill”) and Strategic Investment Group (“Strategic”) are pleased to announce today the closing of the acquisition by Northill of the majority equity interest in Strategic previously held by FFL Partners. Strategic’s senior management and investment teams increased their direct ownership of the firm as part of the transaction, with further increases expected over time.

Strategic, founded in 1987 and based in Arlington, Virginia, is the largest independent investment manager dedicated to the OCIO sector, with AUM of over US$26 billion on behalf of its discretionary clients. OCIO services are a growing part of the investment management industry and Strategic, as a leader in this segment, provides high-quality, independent, customised solutions which are highly attractive to its pension, foundation, endowment, healthcare and sovereign wealth clients. Through its centralised, institutional investment process, the firm’s approach combines active portfolio management, rigorous risk management and open architecture manager selection.

Northill’s investment in Strategic is consistent with its strategy to invest over the long-term in high-quality active investment businesses that create a strong strategic and cultural fit. This transaction is Northill’s sixth to date and sees the firm’s AUM increase to over US$79 billion from US$53 billion at 31 December 2018.

The transaction, which was announced on 20 December 2018, was subject to obtaining client consents and satisfying other customary closing conditions. The transaction has since been approved by 100% of Strategic’s clients.

Jon Little, Partner, Northill Capital LLP, said:
“We are pleased to have completed the acquisition of Strategic Investment Group, the gold standard independent investment firm in the OCIO/Solutions sector. The management team’s increased ownership of the business is a strong vote of confidence in its future and that of the sector. We are looking forward to working with the firm’s talented and passionate team as an owner alongside management and long-term supportive partner, to ensure that Strategic has the support and autonomy necessary to achieve long-term outperformance and sustainable growth.”

Brian Murdock, Chief Executive of Strategic Investment Group, said:
“We are excited to announce the closing and are grateful for the overwhelming support of our clients in making this transaction possible. We are thrilled to be entering into this partnership with Northill, with whom we share a strong philosophical and cultural alignment. Northill provides a patient and permanent capital base and complete autonomy to manage our business and our investment process. The transaction also provides a mechanism to ensure cross-generational stability by increasing the equity ownership of the current and future leaders of our firm. In short, this transaction best positions us to deliver the service and long-term performance that our clients expect.”