Sheffield Haworth Review of US Industry Q2 2020

Presented By: Christopher Smailes, Managing Director Andrew Thompson, Executive Director Louis Demetro, Senior Associate

sheffieldhaworth.com sheffieldhaworth.com 1 1 Q2 2020 | Headline Trends: In the second quarter of 2020 we have seen greater headwinds to the funds industry than have been witnessed in many years. Falling global markets and domestic and international travel bans have made productivity challenging across both manufacturing and distribution. Despite this, there have still been significant pockets of growth, particularly in private markets and with privately owned firms.

Prominent trends include:

Rising Search Activity: Following a series of hiring freezes and search pauses in the first half of Q2, there has been a significant uptick in hiring activity within over the last 6 weeks. This is largely driven by firms that are now committed and comfortable with resuming their 2020 business plans, coupled with a large amount of resignations. Both candidates and managers delayed extending offers amidst the pandemic, which has resulted in individuals changing firms in a condensed period.

Flexible Working: The investment management industry transitioned their businesses into a virtual setting fairly seamlessly. Having had success in this new environment we are now seeing a significant number of asset managers being open to hiring senior individuals that can be based away from HQ, whilst extending remote working to their current employees.

Fundraising: Fundraising activity has begun to increase across private markets, particularly for special situations funds given the current environment. Five special situations funds closed, raising $12bn in aggregate capital, while 20 direct lending funds closed to raise an aggregate of $9.0bn.

Capital Formation: The demand for talented investor relations professionals continues to grow intensely. Managers are looking for capital raisers with a track record of productivity in this remote working environment and we are increasingly being asked to screen for this, as part of our search process.

sheffieldhaworth.com sheffieldhaworth.com 2 2 Q2 2020 | Distribution Overview:

The second quarter of the year has been quite active, with managers continuing to invest and institutionalize their distribution teams.

Institutional Leadership: There continues to be a very high level of activity of firms looking to hire senior institutional leaders, as managers look to expand and revitalize their institutional client groups. In the last three months, Cohen & Steers, Aegon Asset Management, Polen Capital, and Pictet Asset Management have hired senior leaders, or have launched searches.

Southeast Hires: Throughout the last quarter, demand and activity across the Southeast has been one of the highest we have seen in recent years. Managers are both looking to expand their teams as well as redefine territories, which carveout the region away from East Coast or Mid-Atlantic territories. Partners Group have recently hired Anthony Williams to cover the regions and several other managers are running competing searches.

Capital Formation: GPs are continuing to invest and build best in class capital formations teams. Firms are quickly looking to make their senior investor relations professional hire, moving away from the use of third-party marketers and delivering higher levels of customer service. We have seen the likes of Abry Partners make do this by hiring Pamela Harris as Chief Investor Relations Officer from TA Associates.

Private Credit: One of the most compelling trends in the industry in 2020 to date, has centered around managers with growing private credit capabilities, building out dedicated capital raising groups for their credit teams. Managers are continuing to bifurcate investor relations groups by asset class.

sheffieldhaworth.com sheffieldhaworth.com 3 3 Q2 2020 | Key People Moves: Distribution

INDIVIDUAL MOVING TO MOVING FROM Aegon Asset Management BMO Global Asset Management Anne Coupe Global Head of Consultant Relations and Global Financial Head Of Global Consultant Relations June Institutions Cohen & Steers Gramercy Funds Management Jeffrey Sharon Head Of North America Institutional Business Global Head of Business Development June Development And Consultant Relations Kevin Dolsen Polen Capital CastleArk Management June Global Head of Distribution Chief Executive Officer Nicholas Mavro Pictet Asset Management Fiera Capital April Head of US Institutional Global Head of Consultant Relations Mark A. Weiller Stone Harbor Investment Partners LP M&G Investments US June Head of Distribution and Product Management, Americas Investment Director, Emerging Markets Dane Fraser Balyasny Asset Management L.P. UBS June Managing Director, Client Relationship Group Alternative and Direct Investments - Family Office Solutions Mike Kotarski Investment Management Dalton Investments May Head of U.S. Direct and Institutional Sales Managing Director TIAA Endowment & Philanthropic Services Valentina Glaviano Strategic Investment Group Business Development, Covariance Capital Management - May Managing Director, Client Development Team Outsourced CIO Anthony Williams Partners Group May Senior Client Relationship Manager Institutional Business Development Director Anthony Nazar de Jaucourt 37 Capital J.P. Morgan May Director of Marketing Executive Director, Capital Introductions Group

sheffieldhaworth.com sheffieldhaworth.com 4 4 Q2 2020 | Key People Moves: ESG

INDIVIDUAL MOVING TO MOVING FROM Jessica Ground Capital Group Schroders June Global Head of ESG Global Head Of Stewardship Mona Benisi Morgan Stanley Investment Management Simon Property Group June Head of Sustainability Global Head of Sustainability Desiree Fixler DWS Group ZAIS June Group Sustainability Officer Managing Director, Portfolio Manager Caitlin McSherry Neuberger Berman State Street Global Advisors June Director of Investment Stewardship Vice President, Asset Stewardship Juan Lois J.P. Morgan Asset Management Wespath Institutional Investments June Sustainable Investing Strategist Manager, Impact Investments David Alt Victory Capital PNC Capital Advisors May Director, Responsible Investing Head of Responsible Investing Jake Walko Thornburg Investment Management Neuberger Berman May Director of Investment Stewardship Director of Investment Stewardship Emily Chew Morgan Stanley Investment Management Manulife Investment Management May Global Head of Sustainability for Investment Management Managing Director, Global Head of ESG

sheffieldhaworth.com sheffieldhaworth.com 5 5 Q2 2020 | Private Markets Overview:

Private markets hiring has been relatively active through the second quarter of 2020, with private debt receiving the most attention as an opportunity set, whilst we saw a slowdown from private equity managers.

Growing Appetite for Distressed Debt: Fundraising activity picked up in the second quarter with $35bn raised across 49 private debt funds, following a slower first quarter of $22bn raised for 36 closed funds. A growing interest in distressed debt and special situations strategies has been the catalyst for this bounce-back. Firms have been looking to build out these teams with the likes of Kennedy Lewis Investment Management hiring Dik Blewitt as Head of Tactical Opportunities and Peak Rock Capital adding Nicholas Basso to their team from Oaktree Capital.

PE Deal Flow: There was a significant drop in the amount of private equity backed buyout deals over the last quarter, which was the lowest volume of deals that the industry has seen in over seven years. The aggregate deal value fell to $61bn during Q2 2020, significantly lower than the $115bn recorded in Q2 2019.

Origination: Private credit and equity managers are institutionalizing the function of origination and business development. We are seeing an increase in the amount of firms moving away from the full life-cycle investment professional and separating those who are responsible for sourcing investments and those tasked with underwriting and portfolio management. MGG Investment Group has recently hired Eran Cohen from Wells Fargo, where he was responsible for Midwest origination.

Retail Investors: The demand from retail investors continues to build, and while progress in this arena has been notable slow, there has been breakthroughs due to the current market and regulatory conditions. Most notably, Vanguard and HarbourVest announced their private equity partnership.

sheffieldhaworth.com sheffieldhaworth.com 6 6 Q2 2020 | Key People Moves: Private Markets IR

INDIVIDUAL JOINED FIRM DEPARTED FROM Pam Harris Abry Partners TA Associates June Chief Investor Relations Officer Director, Investor Relations Katie Kornel Linden Capital Partners June Partner, Investor Relations Private Fund Group Distribution Liz Weiner Pennybacker Capital Management Sundial Park Group June Managing Director, Capital Formation & Corporate Strategy Founder And Managing Partner Rebecca Chia Atalaya Capital Management Third Point Management May Head of Business Development and Investor Relations Head of Marketing Marielle Sexton Unigestion Aspect Capital May Director, US Institutional Director Matt Nelson Antin Infrastructure Partners ArcLight Capital Partners May Head of North American Investor Relations Head of Investor Relations Putri Pascualy Angelo Gordon PAAMCO May Managing Director, Credit Product Specialist Sr. Credit Strategist & PM, Managing Director Jennifer Strickland Pretium Partners PIMCO April Senior Managing Director, Head of Business Development Executive Vice President Jessica Brennan Onex Carlyle Group April Managing Director, Head of Client and Product Solutions Partner, Investor Relations Adam Kneller Arcmont Asset Management Golub Capital April Head of US Sales Director Neha Verma TPG Onex April Principal, Head of Canada Fundraising Principal, Investor Relations

sheffieldhaworth.com sheffieldhaworth.com 7 7 Q2 2020 | Key Moves: Private Markets Deal Teams

INDIVIDUAL JOINED FIRM DEPARTED FROM Nicholas Basso Peak Rock Capital Oaktree Capital Management June Managing Director, Credit Managing Director John Kropke Principal Real Estate Investors The Townsend Group June Managing Director Principal Susan George White Oak Global Advisors Garrison Investment Group June Head of Asset Management Head of Corporate Asset Management Preston Brice Grant Avenue Capital Apple Tree Partners June Partner Growth Equity Investor Larry Kohn Fiera Capital UBS Asset Management June Sr. Vice President, Senior Strategist - Private Alternatives Real Estate and Private Markets Michael Lawton BlackRock UBS June Managing Director, Private Capital Markets Director, Leveraged Capital Markets Jesse Huff Owl Rock Capital Oaktree Capital Management May PM, Co-Head Opportunistic Credit Managing Director Eran Cohen MGG Investment Group LP Wells Fargo Capital Finance May Managing Director Managing Director, Loan Originations Vincent Letteri Blackstone KKR May Senior Managing Director, Growth Equity Investing Managing Director, TMT Growth Equity James Lambert Elion Partners Amazon April Senior Managing Director, Industrial Investments Head of Real Estate, Amazon Logistics David Kulakofsky Morgan Stanley Investment Management Madison Capital Funding April Managing Director, Private Credit and Equity Managing Director, Head of Software & Technology Services Richard “Dik” Blewitt Kennedy Lewis Investment Management GSO Capital Partners April Partner and Head of Tactical Opportunities Managing Director

sheffieldhaworth.com sheffieldhaworth.com 8 8 Q2 2020 | Equities Overview:

Equities has been relatively quiet in Q2, versus last year, as managers have focused on the performance of their portfolios versus active hiring.

Slowdown of Hires: Whilst there has been some hiring activity globally, the second quarter of 2020 was a relatively slow period of hires for senior equity investment professionals in North America. Many firms and professionals have been focused internally on their teams and performance rather than growth or outside opportunities.

Small Cap: Small Cap equities saw managers looking to either expand their current franchises or add additional capabilities to their platform. This has been one of the most active areas of hiring within equities, with a number of searches currently out in the market. Recently, Royce Investment Partners hired Miles Lewis to their team from American Century.

Quantitative Equities: Large fund managers have been increasing their efforts in quantitative equity strategies, both purely systematic and blended quantitative strategies. Vanguard has hired Cesar Orosco from AJO into their quantitative equity group, WorldQuant named Gary Chropuvka as president, and Mellon Capital has shifted the focus of their platform towards quantitative strategies.

Growth of SPAC Strategies: Firms have been relatively active in launching and successfully raising assts for funds that would invest in the shares of special-purpose acquisition companies. Fir Tree Partners have recently launched the SPAC fund, as did the activist firm Hudson Executive Capital. firms that invest in SPACs include Soros Fund Management, Davidson Kempner Capital, BlueCrest Capital, and Highbridge Capital.

Revolving Door at Hedge Funds Continues: Four portfolio managers have left Citadel within the first week of April. Technology PM Chris Connor, Tio Charbaghi and Steve Bergman, who both ran industrial stocks; and Chip Fortson, who ran a book of financial stocks. Meanwhile, ex-Viking Global Investors Richard Falk- Wallace has recently joined Citadel’s Surveyor. Jake Koury is also set to join the firm’s Global Equities group next month. Koury most recently worked for Balyasny Asset Management.

sheffieldhaworth.com sheffieldhaworth.com 9 9 Q2 202o | Key People Moves: Equities Below are some examples of senior people moves in Q2 in equities. INDIVIDUAL JOINED FIRM DEPARTED FROM Stephanie Link Hightower June Chief Investment Strategist and Portfolio Manager Head Of Global Equities Research Stella Zhang Citadel Goldman Sachs Asset Management June Equity Quantitative Research and Portfolio Management Portfolio Manager and Researcher Joel Drescher Citi Millennium Management June Principal, Investment Specialist Portfolio Manager Miles Lewis Royce Investment Partners American Century Investments May Portfolio Manager, Principal VP & Portfolio Manager, Small Cap Value Fund Jake Koury Citadel Balyasny Asset Management May Portfolio Manager, Global Equities Portfolio Manager Bob Sharpe VELA Investment Management Heartland Advisors May Portfolio Manager, International Partner, Vice President, Portfolio Manager Isaac Ogburn Brown Brothers Harriman Cross Park Family Office May Vice President Portfolio Manager and Equity Investment Analyst Matthew Peron City National Rochdale April Director of Centralized Equity Research Chief Investment Officer Thomas P. Vincent Brookfield Asset Management Moore Capital April Portfolio Manager, TMT Portfolio Manager Cesar Orosco Vanguard AJO April Senior Portfolio Manager, Quantitative Equity Group Principal Neal BasuMullick Thornburg Investment Management Columbia Management April Equity Analyst Equity Research Analyst Usman Ali PIMCO Research Affiliates April Senior Vice President, Quant Equity Research Consultant

sheffieldhaworth.com sheffieldhaworth.com 1010 Q2 2020 | Fixed Income Overview:

We saw a number of senior hires across most major public sub-sectors of fixed income in Q2, with the following notable trends:

Municipal Bonds: The municipal bond space has seen some interesting movement over the last quarter, as we continue to see franchises look to grow and diversify. Notable hires include MSIM hiring Julie Callahan from PIMCO and Ben Barber re-joining Franklin Templeton from GSAM. There were several recent resignations at Wells Fargo Asset Management and other managers.

Multi Asset: Fund managers have been investing into their multi asset solutions teams as they look to provide a broad array of tailored capabilities to win mandates. Harbor Capital Advisors have recently hired two portfolio managers from J.P. Morgan to their Multi Asset Solutions team and T. Rowe hired Erin Garrett from SEI.

Global Macro: In light of the global events that have taken place over the first half of 2020, both large and boutique asset managers have been looking to staff their team with global macro investment and economist talent. Kirkoswald Asset Management have hired two analysts, one from Moore Capital and another from Morgan Stanley and Apollo hired Torsten Slok as Chief Economist from .

Leadership: Over the past quarter, there have been several leadership appointments across fixed income. Most notably, Russ Morrison was named global CIO for fixed income at Aegon Asset Management. Isaac Chang was also named head of execution trading for global fixed income at Citadel.

Liquid Credit: As private markets groups looks to diversify their businesses and improve access to the retail channel, we have seen various private credit managers building liquid credit capabilities. Examples include Onex, who have made a significant number of hires this year.

sheffieldhaworth.com sheffieldhaworth.com 11 11 Q2 2020| Key People Moves: Fixed Income Below are some examples of senior people moves in Q2 in fixed income. INDIVIDUAL JOINED FIRM DEPARTED FROM Rina Joshi Apollo Global Management PointState Capital June Managing Director, Distressed Investments Managing Directed, Distressed and Special Situations Torsten Slok Apollo Global Management Deutsche Bank June Chief Economist Chief Economist Salman Ahmed Fidelity International Lombard Odier Investment Managers June Head of Global Macro and Strategic Asset Allocation Group Chief Investment Strategist Andrew DiMaria Point72 Goldman Sachs June Portfolio Manager Head of U.S. Government Bond Trading Julie Callahan Morgan Stanley Investment Management PIMCO June Head of Municipals SVP, Portfolio Manager Conor Yuan Value Partners UBS Global Asset Management June Senior Portfolio Manager Senior Fund Manager Diana Amatangelo Kirkoswald Asset Management Moore Capital May Research Analyst, Global Macro Research Analyst Jan Kozak Kirkoswald Asset Management Morgan Stanley May Research Analyst, Global Macro Economist Tolu Alamutu Gramercy Funds Management Tellimer June Senior Vice President Credit Research Analyst - CEEMEA Financials Matthew Pallai Harbor Capital Advisors J.P. Morgan Asset Management May Head of Multi Asset Solutions Executive Director, Portfolio Manager - Multi Asset Solutions Spenser Lerner Harbor Capital Advisors J.P. Morgan Asset Management May MD, Portfolio Manager Multi Asset Solutions Vice President Erin Garrett T. Rowe Price SEI May Associate Portfolio Manager, Global Multi-Asset Portfolio Manager, US Investment Grade Fixed Income

sheffieldhaworth.com sheffieldhaworth.com 12 12 Track Record: 2020 and Beyond

sheffieldhaworth.com sheffieldhaworth.com 13 13 2020 & 2019 Track Record . CEO & President ESG Asset Manager . Chief Operating Officer US Endowment . CIO, Emerging Market Equities Global Asset Manager . MD, Head of Consultant Relations Private Equity Firm . MD, East Coast Institutional $20bn AUM Alternative Asset Manager . MD, Head of Institutional $25bn AUM Asset Manager . MD, Head of Fundraising Private Equity (Middle Market Buy-out) . MD, Investor Relations – West Coast Private Equity (Middle Market Buy-out) . Head of FI Quantitative Research Sovereign Wealth Fund . Portfolio Manager – Global Macro Sovereign Wealth Fund . Portfolio Manager - Municipal Bonds $55bn AUM Asset Manager . Portfolio Manager - Investment Grade $500bn AUM Asset Manager . Portfolio Manager Emerging Market Equities $20bn AUM Asset Manager . Portfolio Manager – CLO $16bn AUM Asset Manager . SVP, Fundraising – Family Offices Private Equity Firm . Director, Head of Analyst Relationships $350bn AUM Global Asset Manager . Director, Head of Intermediary $50bn AUM Asset Manager . Director, Head of Intermediary $17bn AUM Asset Manager . Head of US Institutional Sales Global Asset Manager . West Coast Consultant Relations Global Asset Manager . Corporate Strategist Private Equity Firm . Insurance Sales Private Equity Firm . Director, Global Specialty Finance $15bn AUM Alternative Asset Manager . Transportation Analyst ESG Asset Manager . Investment Writer $110bn AUM Asset Manager . Operations Director CLO Manager

sheffieldhaworth.com sheffieldhaworth.com 14 14 Location | Themes & Trends:

Increased flexibility and the growth of historically smaller financial centres: 10% 15% One of the major human capital themes in the US asset Denver Chicago / 15% 5% Milwaukee Boston management industry in 2019 and 2020 has been around location. 5% Minneapolis San Francisco Flexible Working: • Sheffield Haworth has seen companies being increasingly flexible around the location of investment and distribution talent. • With the advent of new technologies, more groups are allowing individuals in ‘non-core’ positions to work from home. • This has meant that managers in certain smaller cities, who had historically had a monopoly on talent, are facing growing challenges from outside groups. Growth of New Asset Management Hubs: 20% • With the increasing cost of living and tax burdens placed on New York traditional East Coast / West Coast hubs, we have seen a & D.C. growing number of asset managers re-locating their HQs to lower 5% tax states and / or allowing investment teams to work out of 15% Santa Fe satellite offices. Los Angeles • The Mid West and Florida have seen a number of managers relocating staff. 5% 5% Dallas Miami Sheffield Haworth have been particularly active in supporting our clients, that have been looking to make these transitions. The map to the right displays the cities where we have active clients in 2019 and 2020.

sheffieldhaworth.com sheffieldhaworth.com 15 15 Sheffield Haworth Our Team

sheffieldhaworth.com sheffieldhaworth.com 16 16 Our Team: Asset Management

Christopher Smailes | Managing Director | Asset Management | New York

Chris joined Sheffield Haworth in 2014 and leads the Asset Management practice in North America. Previously, he was a partner and ran the Asset Management practice for a leading search firm for eight years. Christopher has extensive experience conducting leadership, investment and distribution searches within the traditional and alternative Asset Management sectors, as well as advising on succession and talent planning. He began his executive recruiting career in 2002 and has worked with investment management clients in North America, Europe and Asia.

Andrew Thompson | Executive Director | Asset Management | New York

Andrew re-joined Sheffield Haworth in 2016, having previously worked for Korn Ferry International within its Global Asset Management practice. He started his career with Sheffield Haworth in 2011. Andrew has spent all his career focused on hiring senior investment and distribution professionals into fund management organisations based across the US, UK and continental Europe.

Louis Demetro | Senior Associate | Asset Management | New York Louis joined Sheffield Haworth in 2018 and is a Senior Associate in the Asset Management practice, where he focuses on talent acquisition for private equity, private debt, hedge fund, and long-only asset management firms, as well as allocators globally. Prior to Sheffield Haworth, Louis served in a similar capacity at Global Sage, and began his career in alternative asset management recruitment at Broadreach Group. He holds a B.A. in Economics with a concentration in Statistics from Pace University.

sheffieldhaworth.com sheffieldhaworth.com 17 17 Contact Us

Sheffield Haworth Inc. Christopher Smailes e: [email protected] 777 3rd Avenue Managing Director t: +1 646 597 7403 36th Floor New York, NY 10017 m: +1 917 981 4501

Andrew Thompson e: [email protected] t : +1 (212) 593 7119 Executive Director t: +1 646 597 7404 m: +1 646 957 7376 [email protected] Louis Demetro e: [email protected] Senior Associate t: +1 646 597 7436 m: +1 646 984 3884 www.sheffieldhaworth.com

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