Mid-Year Touchpoint: Reflecting on Mid-Year Progress

Rosemont Roundtable: Exploring the Business of Investment Management

In a recent podcast by Rosemont Investment Group, the hosts discussed two key topics: succession planning and business sustainability in the investment industry.

The podcast began with the observation that it has been a busy half-year for Rosemont, particularly with the closing of its recent investment in Landmark. As a result, Chas and Brad took a moment to reflect on their progress midway through the year.

One of the prominent themes discussed in the podcast was the growing attention being paid to succession. While succession planning has always been a part of Rosemont's focus, they noted an increase in conversations about this topic over the past year.

During the podcast, Brad and Chas emphasize the following key points:

• The challenges faced by investment businesses in terms of sustainability due to industry evolution and increased competition.
• The complexity of investment decisions for allocators, intermediaries and clients who have numerous options to choose from.
• The growing recognition among managers of the need for sustainability and the consideration of proactive or reactive measures.
• The various risks involved with lack of succession planning, including unforeseen tragedies, incapacitation and chronic underperformance.
• The expected elimination of excess capacity and mediocre performers in the industry within the next 5-10 years.
• The impact of the next generation's lower risk appetite on their willingness to take on equity ownership, considering factors like tax burdens, feasibility, and debt levels.

In conclusion, the hosts expressed their belief that the investment industry will witness a surge in corporate activity and M&A (mergers and acquisitions) as businesses seek to address succession challenges and enhance sustainability in an increasingly competitive landscape.

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