Key Takeaways
- • FWM Holdings, parent company of Forbes Family Trust and LGL Partners, completed the acquisition of Optima Fund Management in July 2019, expanding FFT's hedge fund capabilities and manager selection expertise to serve ultra-high-net-worth clients.
- • Optima Fund Management, which managed approximately $2 billion in assets, becomes a wholly-owned independent entity within FWM Holdings, with founder D. Dixon Boardman retaining operational control as CEO and FFT Vice Chairman.
- • The combined entity will deploy hedge fund exposure with gross exposure capped at 150% and net exposure ranging between 50%-100%, across a portfolio of 25 to 40 equity positions, positioning the firm to capitalize on anticipated market headwinds and economic uncertainty.
- • Forbes Family Trust, which had managed over $5 billion in assets as of January 31, 2019, gains access to Optima's multi-manager and single hedge fund manager offerings while offering Optima clients FFT's comprehensive tax, estate, and financial planning services.
- • Both executives view current market conditions as favorable for hedge fund allocation, with Optima founder Boardman emphasizing the protective value of hedge funds given late-cycle economic conditions, elevated equity valuations, and earnings vulnerability to global slowdown.
Summary
FWM Holdings LLC, the parent company of Forbes Family Trust and LGL Partners, completed its acquisition of Optima Fund Management in July 2019, marking a significant strategic expansion for the multi-family office sector. The transaction, initially announced in April 2019, consolidates two independent investment platforms with complementary capabilities in alternative asset management and wealth planning for ultra-high-net-worth families.
Optima Fund Management, a specialist in alternative investments for institutional and high-net-worth clients with approximately $2 billion in assets under management, will operate as an independent wholly-owned subsidiary of FWM Holdings. The company's founder and CEO, D. Dixon Boardman, assumes the additional role of FFT Vice Chairman, maintaining operational independence while integrating with Forbes Family Trust's broader ecosystem. Keith Bloomfield, CEO of Forbes Family Trust, emphasized that the acquisition was driven by Optima's demonstrated acumen in hedge fund manager selection and the quality of its investment professionals, rather than a predetermined strategic search. Bloomfield noted that FFT, which opened to external capital in 2009, has maintained a disciplined M&A approach, completing only three acquisitions including this transaction and a recent purchase of AM Global Family Investment Office.
The combined platform is expected to offer meaningful portfolio construction benefits. Hedge fund exposure will be managed with gross exposure not exceeding 150% and net exposure ranging between 50%-100%, with portfolios typically comprising 25 to 40 equity positions. Both executives cited favorable timing for hedge fund allocations given current macroeconomic conditions. Boardman characterized equities as expensive late in the economic cycle with earnings vulnerable to global slowdown, positioning hedge funds as protective instruments analogous to insurance. Bloomfield concurred that despite recent headwinds in the hedge fund industry, market dynamics could create "tailwinds" for strategic allocations.
The acquisition expands FFT's relationships with leading hedge fund managers and enhances distribution of its comprehensive suite of products and services—including sophisticated tax planning, estate planning, and financial advisory—to Optima's existing client base. As of the transaction's completion, FWM Holdings managed assets across both Forbes Family Trust and LGL Partners for prominent ultra-high-net-worth families through this expanded alternative investment platform.
Optima Fund Management, a specialist in alternative investments for institutional and high-net-worth clients with approximately $2 billion in assets under management, will operate as an independent wholly-owned subsidiary of FWM Holdings. The company's founder and CEO, D. Dixon Boardman, assumes the additional role of FFT Vice Chairman, maintaining operational independence while integrating with Forbes Family Trust's broader ecosystem. Keith Bloomfield, CEO of Forbes Family Trust, emphasized that the acquisition was driven by Optima's demonstrated acumen in hedge fund manager selection and the quality of its investment professionals, rather than a predetermined strategic search. Bloomfield noted that FFT, which opened to external capital in 2009, has maintained a disciplined M&A approach, completing only three acquisitions including this transaction and a recent purchase of AM Global Family Investment Office.
The combined platform is expected to offer meaningful portfolio construction benefits. Hedge fund exposure will be managed with gross exposure not exceeding 150% and net exposure ranging between 50%-100%, with portfolios typically comprising 25 to 40 equity positions. Both executives cited favorable timing for hedge fund allocations given current macroeconomic conditions. Boardman characterized equities as expensive late in the economic cycle with earnings vulnerable to global slowdown, positioning hedge funds as protective instruments analogous to insurance. Bloomfield concurred that despite recent headwinds in the hedge fund industry, market dynamics could create "tailwinds" for strategic allocations.
The acquisition expands FFT's relationships with leading hedge fund managers and enhances distribution of its comprehensive suite of products and services—including sophisticated tax planning, estate planning, and financial advisory—to Optima's existing client base. As of the transaction's completion, FWM Holdings managed assets across both Forbes Family Trust and LGL Partners for prominent ultra-high-net-worth families through this expanded alternative investment platform.
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