Northern Trust Launches Subsidiary to Manage Alternative Assets

Jun 2 2015 | 9:28am ET

Northern Trust announced it has established a registered investment advisor subsidiary, 50 South Capital Advisors, to manage its alternatives programs.

Formed from the Northern Trust Alternatives Group, the investment boutique will provide investors with customized solutions through its access to unique and differentiated private equity and hedge fund managers in the small- and mid-market segments.

Led by Managing Director Robert Morgan, a 25-year veteran of financial services and private equity, 50 South Capital will have $4.3 billion in assets.

“Demand for investments with differentiated and uncorrelated returns continues to grow,” said Stephen Potter, President of Northern Trust Asset Management. “Over 15 years, Northern Trust has developed special expertise providing alternative investment solutions that combine unique manager sources of alpha with strong risk management and oversight. The formation of 50 South Capital marks a milestone for Northern Trust, better aligning our alternative investment talent with the marketplace for those solutions.”

The entire Northern Trust Alternatives Group team has transitioned to the new firm. Under its new governance structure, 50 South Capital Advisors, will become the investment manager of its alternatives programs.

“Investors will benefit from a highly motivated and aligned investment team at 50 South Capital, coupled with the resources and global network of Northern Trust,” Morgan said. “We believe this combination creates a competitive advantage that will position the firm well for continued access to unique managers, thoughtful portfolio construction, and asset growth.”

Assets of 50 South Capital include approximately $3.0 billion in assets under management and approximately $1.3 billion assets under advisement.

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