SEATTLE, March 29 /PRNewswire/ -- Orca Bay Partners, a private equity firm today announced a management-led buyout of all the assets of 1838 Investment Advisors from MBIA Inc. (NYSE: MBI). 1838 Investment Advisors has more than $3.6 billion under management. It specializes in large capitalization core, international, and fixed-income investment strategies and is known for its TaxSmart(R) tax-efficient portfolio management capability. The management and employees of 1838, together with an investor group led by Orca Bay Partners will now own and operate 1838's business. The transaction is expected to close on, or about May 10, 2004.
The new management team will include 1838's current Chief Investment Officer, Joseph T. Doyle, Jr. and current Managing Director John Springrose, who is responsible for 1838's sales and marketing efforts. Doyle and Springrose have been with the Company since before its original management buyout from Drexel and Company in 1988.
1838's existing management team will be enhanced by the addition of several seasoned and experienced professionals including Richard D. Hughes. Hughes will become CEO when the transaction closes.
"1838 has a strong heritage that traces its roots back to the early days of Wall Street. The challenge of leading the business through its next stage of growth is energizing and exciting for me personally. We will be passionate about delivering excellence to our business partners and clients everyday and initially focused on strengthening the depth of the entire organization," said Hughes.
"The opportunity to return the business to its independent ownership will allow us to dedicate ourselves solely to the needs of our clients and partners without the distractions that can be present with large publicly traded asset management firms. We are personally thrilled with this transaction," added Springrose.
Orca Bay Partners, known for backing such companies as Parametric Portfolio Associates, EnvestnetPMC and Undiscovered Managers is leading the management buyout. "This is arguably the deepest and most well rounded group we've ever backed. We couldn't be more excited about empowering this leadership team," said Ross Chapin, Managing Partner of Orca Bay Partners.
1838 is the successor to Drexel and Company, which was founded as a banking and investment management firm by Francis Drexel in Philadelphia in 1838. J.P. Morgan is among the many storied partners that once graced the halls of 1838, which was then known as Drexel, Morgan Guaranty. 1838 merged with MBIA in 1998 and has since been an autonomous subsidiary of MBIA Asset Management.
Along with large cap, fixed-income, and international investment capability, 1838 also delivers attractive after-tax returns by combining the flexibility of professionally managed separate accounts with proactive tax management. 1838 is one of the largest distributors of separate accounts in the financial advisory business. In addition to its offices in suburban Philadelphia, 1838 will now have offices in Seattle, WA and Los Angeles, CA.
About Orca Bay Partners
Orca Bay Partners is a private equity investment firm focused on investing in financial services companies. Founded in 1998 by John E. McCaw Jr., Ross Chapin and Stan McCammon, it is based in Seattle, WA and an affiliate of Orca Bay Capital. Orca Bay Partners manages money for institutional clients ranging from fund-of-funds to commercial banks, and for wealthy individuals. Orca Bay's areas of expertise include asset management and wealth management firms as well as companies that distribute financial products. Its current list of financial services investments includes Parametric Portfolio Associates of Seattle, WA and EnvestnetPMC of Chicago, Il.
About 1838 Investment Advisors
King of Prussia, PA -- 1838 Investment Advisors is an investment management firm that provides services to institutional and high-net-worth individual investors. 1838 manages assets for corporate and public employee benefit plans, Taft-Hartley funds, hospitals, foundations and endowments as well as high-net-worth investors through wrap programs offered by broker/dealers, banks and others. Total client assets under management are over $3.6 billion. 1838 is recognized for its research and development of the TaxSmart(R) technology that provides investors access to tax-efficient, actively managed separate accounts.
SOURCE Orca Bay Partners
CONTACT: Rebecca Walder of Gyro Group, +1-415-445-9111; or 1838, +1-484-322-4300, or media@1838.com
