Dechert LLP recently advised Wellington Management on a strategic alliance with Vanguard and Blackstone to transform how investors access institutional-caliber investment opportunities. The three firms will collaborate to develop simplified multi-asset investment solutions that seamlessly integrate public and private markets as well as active and index strategies.
This collaboration seeks to broaden access to sophisticated multi-asset portfolios ordinarily available to the largest global institutions. The new initiative, which is the first of its kind for the firms, brings together three world-class organizations drawing on their respective strengths:
- Wellington’s nearly 100-year track record of active management and sophisticated asset allocation expertise;
- Vanguard’s 50-year track record of delivering high-performing actively managed strategies and index funds at low cost to investors; and
- Blackstone’s 40-year track record of cycle-tested performance and leadership position as the world’s largest alternative asset manager and number one provider of private markets solutions for individuals.
With this collaboration, the firms seek to address one of the most important long-term challenges facing investors and the asset and wealth management industry – building fully diversified portfolios that incorporate private assets and pursue higher returns. The firms aim to develop solutions that can support financial advisors’ efforts to meet their clients’ income and growth goals.
Solution details are expected to be announced in the coming months.
Jean M. Hynes, CEO of Wellington Management, said:
“Vanguard and Wellington have worked closely together for 50 years and have long admired Blackstone’s capabilities. We believe the unique combination of our investment expertise and well-respected brands will enable us to provide investors with comprehensive asset class exposure in easy-to-access investment solutions. We look forward to expanding these collaborative efforts over time to address evolving investor needs.”
Greg Davis, President and CIO of Vanguard, said:
“Vanguard’s expertise in both active and index strategies has helped our clients achieve investment success for five decades. Vanguard’s world-class active fixed income team combines top-down market and economic insights with bottom-up, research-driven security selection to consistently generate alpha. And Vanguard is an industry pioneer with extensive expertise in offering low-cost index funds. Through this unique collaboration with Wellington and Blackstone, we’re once again helping clients achieve investment success and changing the way investors access public and private markets.”
Jon Gray, President and COO of Blackstone, said:
“Blackstone has been a pioneer in revolutionizing how individual investors access private markets and today we’re proud to join forces with Wellington and Vanguard, two of the world’s leading asset managers, to further expand the benefits of private markets. This initiative builds on our proven track record of making institutional-quality investing available to individuals, with the power of Blackstone’s scale and expertise across asset classes.”
The Dechert team that advised Wellington Management included financial services partners Christopher Christian, William Bielefeld and Aaron D. Withrow as well as tax partner Joseph A. Riley.
