Teton Associates

Non Traditional Lift Out Services

The traditional business model in the retained search industry has been for the search firm to seek out a client willing to retain them to find specific individuals to fill specific functional roles.  While Teton will continue to act in this traditional capacity, it has created a new and different business model to actively seek small teams of dedicated investment professionals, work with them to "package" an offering and then pro actively introduce these teams to appropriate members of Teton's client base. 

This initiative has resulted in the successful transition of a number of investment teams from one company to another.  As Teton's reputation has grown as a source of investment teams, we have been retained by clients to locate and recruit a specific investment strategy and the team managing that strategy.

Some of our more aggressive clients are now taking a different approach.  Rather than start out seeking a team to lift out, we have several mandates under way to first look for an acquisition of a company or a business unit.  This practically ensures both clients and track record go with the transaction.  If an appropriate company or team is not available, the client then seeks a lift out.  Larger merger and acquisition transactions have led Teton to forge close ties with the private equity firm of Rosemont Partners and the investment banking firm of Berkshire Capital.

Over the past year we have conducted a number of successful lift outs.  A partial list of initiatives we have completed or are currently working on include the following:

• A five person high yield team to a fixed income money manager;
• The acquisition of a company specializing in publicly traded REIT securities to a New York based investment manager;
• The acquisition of a $25 plus billion long only equity team to an east coast money manager.
• A five person wealth management team to a New York registered investment advisor.
• A six person long only team focused on insurance company clients.
• The acquisition of a value equity company to a Midwest fixed income asset manager.