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irtus Investment Partners, Inc., which operates a multi-manager asset management business, and Cliffwater LLC, a leading advisory firm that provides institutional investors with portfolio diversification through alternative investments, today announced they have established Cliffwater Investments LLC, an investment adviser that will subadvise a series of multi-strategy, multi-manager alternative mutual funds for retail investors.
“There is a growing understanding among financial advisors that portfolios constructed primarily with traditional equity and fixed income securities are reliant on an ongoing bull market and low interest rate environment to address their clients’ needs,” said George R. Aylward, Virtus’ president and chief executive officer. “In order to meet their long-term financial goals, investors need to consider alternative strategies that typically have been available only to institutional investors and high-net-worth clients. Through our partnership with Cliffwater, we can give clients access to institutional-quality alternative investment managers in a retail mutual fund that has the benefits investors appreciate: daily liquidity, timely tax reporting, transparency, and affordability.”
“We are leveraging Cliffwater’s expertise in alternative investments to develop open-architecture, multi-strategy, multi-manager alternatives funds. Cliffwater is well-regarded as an alternatives research and advisory firm, and with its institutional experience and disciplined approach to risk management, manager sourcing, and portfolio construction, it is the right partner to help us solve the evolving needs of retail investors,” Aylward said.
“Both Cliffwater and Virtus bring to the partnership unique skills and expertise that, when combined, can produce significant opportunities for the retail investor,” Nesbitt added. “We conducted an extensive search to find the best asset management partner to bridge the gap from serving large institutional clients to retail investors, and after meeting with many mutual fund firms, it was obvious that Virtus had the right combination of leadership, experience and market position that Cliffwater was looking for in a long-term strategic partner.”
The new venture will leverage Cliffwater’s expertise in portfolio construction and its in-depth research of more than 4,000 alternatives managers. Its open-architecture approach to selecting managers is utilized by some of the largest institutions, pension funds and endowments. Cliffwater has approximately $70 billion of assets under advisement, including approximately $52 billion in alternative strategies.
Cliffwater LLC provides alternative advisory and asset management services to institutional investors including endowments, foundations, retirement systems and financial institutions. It is one of the largest alternatives advisory firms, assisting clients globally in their allocations to hedge funds, private equity, real estate, and real assets.
Virtus Investment Partners is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand.
By Lolita A. Alford