INVESTING is a complex world of risks and rewards, where nothing is certain. But even as investment professionals need to adapt to a constantly changing environment, what stays constant for investment firm Cambridge Associates is its steadfast commitment to placing the client front and centre in everything they do.
As a stalwart of the investment advisory space for half a century, the company should know what it’s talking about. Indeed, Cambridge Associates’ customer-centric strategy is embedded in its unique ownership structure. The firm is independently owned and privately held by its employees and a select group of clients, including the Rothschilds and the Hall family, the proprietors of the Hallmark greeting cards business.
According to Cambridge Associates’ chief executive officer (CEO) David Druley, this structure nurtures a strong client-centric mindset.
“When our shareholder clients and employees sit around the table, the discussion is always focused on ‘How does this benefit the client?’. So, we're a very client-first culture,” said Druley, who was in Singapore recently as part of the Boston-based firm’s 50th anniversary celebrations.
Druley notes that Cambridge Associates’ formula for success is also rooted in humility, reflection, and continuous learning. He is a staunch advocate of organisational structures that minimise biases and promote diversity.
Attracting the right talent is another core focus for Cambridge Associates, and the firm seeks individuals who are smart, agile and collaborative.
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“What drives our senior talent is delivering great outcomes for clients. And this helps them do great things in the world and have a bigger impact on their communities. That's our differentiator when it comes to finding great talent to join us,” explains Druley.
| Cambridge Associates: Charting 50 years of growth | ||
|---|---|---|
| Assets under management: Over US$560 billion as of 31 March 2023 | ||
| Global footprint: 11 offices across The Americas, UK, Europe and Asia Pacific | ||
| Employee strength: Over 1,400 employees globally |
From pensions to global expansion
Druley began his journey at Cambridge Associates in 2003 working with prestigious institutions and wealthy families on their investment portfolios.
His unique proposition of combining the firm's expertise in identifying great investment managers with a pension risk management framework led to the inception of a new business line within the firm. Having served as the head of the pension business for seven years, Druley ascended to the CEO's role seven years ago.
Initially focused on endowments and foundations, most notably Harvard University, Cambridge Associates’ business has expanded to encompass more client segments over time.
Today, its client base spans the globe, with about 45 per cent of the business coming from endowments and foundations, over 35 per cent from private clients such as ultra-high net worth individuals and family offices, and the remaining 20 per cent from institutions like sovereign wealth funds, pensions and insurance companies.
Their fastest-growing segment is the private client business, which is viewed as the firm's long-term growth engine. Indeed, the rapid rise of family offices in Asia reflects the desire of ultra-wealthy families to find the right expertise to manage their growing fortunes, opening up new avenues of opportunity for firms like Cambridge Associates.
In terms of asset classes, Cambridge Associates is one of the pioneers in private markets investing and has incorporated private investments in clients’ portfolios since the 1970s. It has grown its coverage over the years to include alternative investments such as private equity, venture capital, growth equity, secondaries, private credit, and hedge funds.
Capitalising on Asia’s wealth accumulation
Asia is expected to become a growth driver for Cambridge Associates, as wealth continues to accumulate rapidly in the region. The firm established its presence in Asia 22 years ago, and today it operates three offices in the region – Singapore, Beijing, and Hong Kong – with over 70 staff dedicated to this vibrant market.
“Many wealthy families in Asia are seeking to professionalise their family offices and diversify their fortunes across geographies and asset classes. We have close to 300 senior investment professionals globally, some of whom are based in Asia, looking into investment ideas for our clients.
“This localised expertise with a global reach, coupled with our strong investment capabilities and global manager network, makes us well-positioned to help families achieve their goals,” says Druley.
In particular, their deep expertise in private markets aligns well with the needs of Asian clients. The firm has a robust track record in this space, being early investors in private equity, venture capital and hedge funds. It has also developed a robust and proven manager selection process, conducting about 5,000 manager meetings per year, and tracking nearly 19,000 active funds, out of which only about 5 per cent meet their stringent investment standards.
“We are very committed to Asia. There are great investment ideas here, both in the liquid markets and illiquid markets – venture capital and public equity, but also private credit and infrastructure – and we think this represents a great growth opportunity,” says Druley.
Looking ahead, Cambridge Associates will continue to invest in Asia, with a clear vision to meet each client's unique needs and helping them unlock their portfolio's potential.
As CEO, Druley is personally focused on four key areas for long-term success: Investment returns across different mandates, client satisfaction and retention, and hiring and retaining talent. He believes that success in these areas will be crucial to fostering a robust, sustainable business in the increasingly complex world of investing.
“If we get those four things right, we will find success. And I’ll be able to hand off a great business to the next CEO, whenever that happens,” he adds.
For more information, visit Cambridge Associates.
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