NBIM Real Assets CIO Mie Caroline Holstad to Depart

Norges Bank Investment Management, which manages the Government Pension Fund Global, the world’s largest sovereign wealth fund with roughly $1.74 trillion in assets under management, announced Monday that it will combine the units that manage the fund’s real assets and equity investments. According to the state-run management company, the move will strengthen the management of both asset classes by “bringing together people with complementary expertise.”

The consolidation of the two units and Holstad’s departure are both effective on January 1, 2025. The combined unit will be renamed active strategies and will be led by Daniel Balthasar and Pedro Furtado Reis, co-CIOs of equities, based in London.

The move does not affect the manager’s investment strategies, according to the announcement.

“We will remain an active real estate investor and continue to buy assets when they are attractively priced and in-line with our strategy,” a press release stated.

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In addition, Mie Caroline Holstad, CIO of real assets, will leave NBIM after 14 years at the firm, the last four spent as CIO of real assets. Previously, Holstad’s titles included global head of real estate operations and chief administrative officer of real estate.

“As the fund further cements its energy expertise and ambition, pulling on all areas of active management under one umbrella will also benefit the other parts of real assets,” Holstad said in a statement. “I therefore firmly believe that the optimal platform for real assets going forward is in close partnership with the fund’s other active investment strategies. Hence, I have decided that my time here has come to an end.”

Under Holstad’s leadership, real assets were consolidated into one area, which includes unlisted and listed real estate and unlisted infrastructure and renewable energy investments, according to NBIM’s announcement.

“Mie has done a tremendous job for the organization. She started out as a young adviser 14 years ago and has proven her value all the way up to being a chief in the fund’s leader group,” said Nicolai Tangen, NBIM’s CEO, in a statement. “The last four years, she has managed one of the largest real estate portfolios in the world. She is a leader that is loved by people, especially her colleagues. I respect her decision to leave, but we sure will miss her and know that she has a great career ahead of her.”

The manager allocates 72% of the fund’s portfolio—about $1.16 trillion—to equities. NBIM’s real estate exposure is 1.7% of the total portfolio, or $27.94 billion. Renewable energy infrastructure, which includes the fund’s handful of offshore wind investments, equal to 0.1% of the fund, or $1.8 billion. Fixed income accounts for 26.1% of the fund, or $421.87 billion.

NBIM has no allocation to private equity. While the manager has consistently requested permission to expand its investments in the private markets, it needs permission from the government to do so, and it has declined NBIM’s request multiple times.

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Tags: Mie Caroline Holstad, NBIM, Nicolai Tangen, Norges Bank Investment Management

LSV Asset Management sent a cease-and-desist letter to four former executives who recently sued the firm and who claimed the firm cheated them out of more than $100 million by forcing them to sell their equity at a deep discount.

In the letter, LSV disputed the complaint’s claims that the company “engaged in a fraudulent scheme,” saying the statements are false and an attempt to pressure the firm and its employees “and to influence factfinders who may be called upon to render judgment in the lawsuit.”

The former executives alleged in their initial complaint that LSV, along with current and other former executives, pressured the four to acquire shares in the company as a “sign of loyalty.” They claim they paid more than $25 million for equity in the firm, which they say was largely financed by bank debt and purportedly entitled them to millions of dollars in annual distributions. The complaint further alleges that LSV told the plaintiffs repeatedly throughout their employment that they would own the purchased shares outright when the bank debt was paid off.

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The plaintiffs in the lawsuit are Han Qu, Bhaskaran Swaminathan, Peter Young and Simon Zhang, as well as Qu’s wife, Peng Tu. Young was formerly director of client portfolio services, Swaminathan had been director of research, Zhang was a senior quantitative analyst, and Qu worked for the firm as a senior quantitative analyst and was one of LSV’s founding employees. According to the complaint, the four worked at the firm for a total of more than 90 years. The complaint was filed in the Circuit Court of Cook County, Illinois.

In response, the company sent letters to the former executives demanding they “immediately cease and desist from making any further false or misleading statements about LSV or any of its employees.” The letters, signed by Keith Bruch, a partner in LSV and its director of client portfolio services, went on to say that the firm will hold the plaintiffs personally liable for any defamatory false statements.

“LSV reserves all rights, including the right to pursue any and all remedies against you personally and individually for any damages caused by any breaches of contract, false statements or other violations of law by you,” the letters stated.

The former executives fired back with a scathing letter accusing the asset manager of trying to intimidate them.

“The letter you sent—and the manner in which you sent it—constitutes LSV’s most recent attempt to bully us,” the plaintiffs stated in their letter. “We are not going to be swayed by your thinly veiled attempt at intimidation.”

In their letter, the former executives said LSV stripped them of their shares, refused to make future distributions and withheld more than $25 million of their money. “Now, adding insult to injury, you are threatening us with a defamation lawsuit. LSV’s conduct is deplorable.”

The letter also refuted the idea that the initial complaint constituted false and misleading statements.

“We filed a lawsuit alleging that LSV engaged in a fraudulent scheme to force the sale of our equity,” the latter stated. “This cannot be the basis of a defamation claim.”

Tim Spreitzer, an executive vice president at consultancy Brian Communications, responded on behalf of LSV with an emailed statement: “LSV believes the civil complaint filed by the former employees is filled with inaccuracies and without merit. LSV used a legal process server to send the former employees cease-and-desist letters to ensure they received the letters and for no other reason.”