Berwyn, Pennsylvania-based Turner Investments [profile] is merging with investment management and technology firm Veracen LP in what company executives describe to MFWire as a merger of equals. Financial terms of the deal were not disclosed, but the combined entity will boast north of $800 million in assets under management, MFWire has learned.

"I've known Michael Kennedy [Veracen senior managing partner and CEO] for over 20 years and have admired what he's achieved in private equity and financial services," Bob Turner, co-founder of Turner Investments, tells MFWire. 

As a result of the deal, Turner Investments will be expanding regionally and with talent. Erik Hagar, senior portfolio specialist with 30 years of industry experience, including his most recent stint at Vanguard, and Jena Dietrich, head of marketing, joined Turner Investments on July 5.

"I was brought on to be a senior product specialist to help with developing products and strategies. Over the last two years I’ve worked closely with Veracen on product strategy and development. That's what helped get us here today," Hagar tells MFWire.

Turner Investments plans to add two additional offices in New York and Boston.

In his conversation with MFWire, Turner went on to describe the phenomenon that's taken shape over the past year or so of some $400 billion in actively managed equity assets moving toward passive. The newly formed company, through a new technology and risk management platform, is hoping to intercept some of those assets for its existing and new mutual fund products.

"What we have through the combined organizations is a sophisticated platform focused on developing products and working with existing products to create structure, discipline, and risk controls such that outcomes are more predictable and less module," Turner tells MFWire.

The approach is more quantitative but it's not robo-advisory.

We're not out there saying we're robo-advisors by any stretch. We're traditional asset managers -- offering products that are very structured, disciplined and have predictable outcomes for advisors, wealth managers and institutions. They can give these products better use in total asset allocation with a better grasp on the type of outcomes with this predictability.

The combined entities will oversee approximately 15 funds, including five that Turner currently has plus the products of other managers in separate accounts. Those products are being merged into the process and will eventually be offered in mutual fund form.

"This remains active management but it's more disciplined, more focused and more structured. Because of the technology behind this, our goal is to offer competitive prices as it relates to traditional active management," Turner tells MFWire.

The products will be offered to traditional channels across consultants, RIAs, and broker dealer platforms.

 

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