Northern Trust Spins Off Entire Alts Operation

Northern Trust has spun out its hedge fund and private equity business under the new moniker 50 South Capital Advisors, the firm announced Monday. 

The infant boutique retains close ties to its corporate parent via existing clients, ownership (Northern Trust owns 100% of the company), and location. 50 South—a nod to Northern Trust’s headquarters at 50 South LaSalle Street in Chicago—has inherited $3 billion in client capital under management and $1.3 billion on which to advise. 

“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.” —Robert MorganRobert Morgan, appointed head of the original alternatives unit in 2011, has likewise maintained his role through the transition. A former director at local private equity fund Frye-Louis Capital, Morgan now leads 50 South’s investment operations as managing director. 

The entire Northern Trust alternatives team has transitioned to join Morgan at the new entity, according to the parent company. 

“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.

Like its progenitor, 50 South Capital will specialize in private equity and hedge funds-of-funds, although a spokesperson would only refer to this product line as “multi-manager solutions.”

The boutique also advises on custom portfolios and has the capacity to serve as outsourced-CIO for institutions’ entire alternatives buckets. 

Stephen Potter, president of Northern Trust Asset Management, called the launch of 50 South “a milestone” for the 125-year-old financial giant. 

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