HOUSTON--(BUSINESS WIRE)--Salient Partners, L.P. announced today that it has acquired Integrity Capital Services, LLC and named Integrity’s founder, Lee Partridge, as Salient’s Chief Investment Officer. Currently, Mr. Partridge serves as the Portfolio Strategist on San Diego County Employees Retirement Association’s (SDCERA) approximately $7.7 billion portfolio.
During his tenure with SDCERA, Mr. Partridge has assisted the board of trustees and staff in implementing a new asset allocation framework, which integrates a cost-effective approach to core asset classes and styles; top-tier external managers and downside protection. In addition, Mr. Partridge assisted the plan in increasing its exposure to alternative investments in a thoughtful manner that takes a comprehensive view of all traditional and non-traditional exposures. As a result of these initiatives, Mr. Partridge has reduced management costs within the portfolio by approximately $10 million per annum, while adding approximately 1.5% in net returns above the previous benchmark over the past year. Under the SDCERA board’s and Mr. Partridge’s leadership, SDCERA’s pension fund was named as a finalist for medium-sized pension fund of the year for 2010 by aiCIO, a subsidiary of Plan Sponsor magazine.
Noting this success, Andrew B. Linbeck, Managing Director of Salient said: “We are delighted to have Lee join the Salient family as our CIO. Lee has a strong moral compass, values grounded in a deep faith, excellent institutional experience, and a superlative track record that will serve our current and prospective clients well.”
A. Haag Sherman, Managing Partner of Salient, added: "We are blessed with excellent investment talent. Mark Yusko and his team at Morgan Creek Capital Management are great partners in our successful joint venture, which provides investors with an endowment style portfolio, and we could not ask for a better CIO of this portfolio than Mark. He’s world class. Lee will provide Salient with a world-class CIO for our separate asset management and advisory businesses."
Salient’s acquisition of Integrity is a part of an overall strategy to have an industry leading investment platform, which focuses on a quantitative approach to asset allocation, a focus on cost savings for the benefit of clients, and a strategy to use alternative investments and hedging strategies to enhance overall risk-adjusted returns. By combining its investment and distribution capabilities with the intellectual property developed by Mr. Partridge at Integrity, Salient believes that it will have an unparalleled investment and servicing model, which will inure to the benefit of clients both large and small.
To that end, Lee Partridge said: “By combining my firm with Salient, we have created a platform that is unique in the industry. The platform combines a sophisticated approach to managing risk and assets for institutions and individuals alike, particularly in a rapidly changing investment environment. With the resources at hand, I believe that the level of investment and risk management expertise that we can bring to bear will be at the forefront of the asset management industry, and increasingly coveted by institutional and individual investors alike. Our goal is to serve all of these investors, and to serve them well.”
SDCERA Board Chairman Douglas Rose noted: “After hearing about the merger and its rationale at our board meeting, I believe that the merger of Integrity and Salient is a very positive development for SDCERA. The merger will bring, at no additional cost to SDCERA, added resources that will help us fill the gaps we currently have in our current investment staff. We look forward to Lee and Salient Partners successfully implementing the innovative portfolio Lee has created for SDCERA.”
Previously, Mr. Partridge served as Deputy Chief Investment Officer of Teachers Retirement System of Texas (TRS), a plan with assets of approximately $95 billion in 2010. In this capacity, Mr. Partridge was responsible for the development of asset allocation, hedging strategies and the plan’s alternative investment portfolio. Mr. Britt Harris, CIO of TRS, noted that "Lee is one of the nation's most effective global investors and one of the investment industry's most ethical people. He is the perfect match for an organization that has exactly the same characteristics."
Mr. Partridge’s move to Salient was also lauded by Clifford S. Asness, Managing and Founding Principal of AQR Capital Management, who noted: “Lee is one of the best CIOs in the country. He uses a strong quantitative approach, is focused on spending his risk and illiquidity units judiciously and delivering a cost-effective solution to his clients.”
About Salient Partners
Salient Partners is an $8.3 billion investment firm based in Houston, Texas. Salient has been an innovator in the development, management and distribution of sophisticated investment solutions and products for both individuals and institutions. Salient’s investment strategy employs a quantitative approach to asset allocation, an intensive process to identify skill-based managers, a determined effort to reduce costs across portfolios through the use of passive investments where appropriate and an integrated risk management framework. The end result is a cost-effective solution that judiciously integrates private investments and hedge funds into a diversified portfolio to enhance returns and reduce overall portfolio volatility. Salient also has a sophisticated sales and distribution model that provides its clients and investors with a high touch service proposition. For more information on Salient and its professionals, please visit www.salientpartners.com.