Key Takeaways
- • Goldman Sachs Asset Management acquired Aptitude Investment Management, a Seattle and Vancouver-based fund-of-hedge funds manager overseeing $3.5 billion in discretionary assets across separately managed accounts and commingled vehicles, with deal terms undisclosed and expected close by year-end 2018.
- • Aptitude co-founders Salim Shariff and Jeff Klein, each with more than 20 years of experience advising on alternative assets for institutional investors, will join GSAM's alternative investments and manager selection group alongside their existing team.
- • The acquisition expands GSAM's alternative investments and manager selection group, which oversees more than $200 billion in client assets as of September 2018, positioning Goldman to strengthen its hedge fund services offering for large institutional clients.
- • Aptitude's Seattle and Vancouver offices will remain operational post-acquisition, maintaining the firm's focus on hedge fund services delivery to institutional investors on North America's west coast.
- • The deal reinforces Goldman's ongoing diversification of its $1.5 trillion asset management platform through targeted acquisitions in alternative investments and specialized fund management capabilities.
Summary
Goldman Sachs Asset Management announced the acquisition of Aptitude Investment Management, a West Coast fund-of-hedge funds specialist, in a strategic move to bolster its alternative investment capabilities. Aptitude, operating offices in Seattle and Vancouver, manages $3.5 billion in discretionary assets through separately managed accounts and commingled investment vehicles. Goldman did not disclose transaction terms, though the deal was expected to close by year-end 2018.
The acquisition brings on board Aptitude's founding team, including co-founders Salim Shariff and Jeff Klein, both of whom bring more than two decades of experience in advising institutional investors on alternative asset allocation and deployment. Aptitude's staff will integrate into GSAM's alternative investments and manager selection group, which encompasses hedge fund, private equity, real estate, public equity, and fixed-income strategy advisory services. This integration expands the group's asset base to more than $200 billion under management as of September 2018.
Timothy O'Neill and Eric Lane, co-heads of Goldman's consumer and investment management division, characterized the acquisition as strategic positioning for platform growth, citing Aptitude's "experienced team, differentiated investment strategy and market-leading performance." The broader division supervises more than $1.5 trillion in assets across institutional and individual investor mandates globally. Aptitude's operational footprint—maintaining Seattle and Vancouver offices—preserves the firm's dedicated focus on large institutional hedge fund services in the Pacific Northwest and Western Canadian markets.
Aptitude's history reflects the evolution of regional asset management. Originally established as Federal Way Asset Management, the firm served as the in-house asset manager for Weyerhaeuser Company's defined benefit pension plan before spinning out as an independent manager in 2012. The acquisition by Goldman extends the firm's institutional client reach while maintaining operational autonomy in its core West Coast markets.
The acquisition brings on board Aptitude's founding team, including co-founders Salim Shariff and Jeff Klein, both of whom bring more than two decades of experience in advising institutional investors on alternative asset allocation and deployment. Aptitude's staff will integrate into GSAM's alternative investments and manager selection group, which encompasses hedge fund, private equity, real estate, public equity, and fixed-income strategy advisory services. This integration expands the group's asset base to more than $200 billion under management as of September 2018.
Timothy O'Neill and Eric Lane, co-heads of Goldman's consumer and investment management division, characterized the acquisition as strategic positioning for platform growth, citing Aptitude's "experienced team, differentiated investment strategy and market-leading performance." The broader division supervises more than $1.5 trillion in assets across institutional and individual investor mandates globally. Aptitude's operational footprint—maintaining Seattle and Vancouver offices—preserves the firm's dedicated focus on large institutional hedge fund services in the Pacific Northwest and Western Canadian markets.
Aptitude's history reflects the evolution of regional asset management. Originally established as Federal Way Asset Management, the firm served as the in-house asset manager for Weyerhaeuser Company's defined benefit pension plan before spinning out as an independent manager in 2012. The acquisition by Goldman extends the firm's institutional client reach while maintaining operational autonomy in its core West Coast markets.
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