Firm Description and Types of Advisory Services
Strategic generally offers discretionary investment management and planning services to both U.S. and
non-U.S. individual and institutional investors, including employee pension and benefit plans, foundations,
endowments, government entities, pooled investment vehicles and family and general corporate funds.
Strategic actively manages broadly diversified global portfolios as well as individual asset classes or groups
of asset classes.
Strategic generally has discretionary authority over its clients’ portfolios. As of December 31, 2018,
Strategic had total regulatory assets under management of $38,439,437,283, of which $23,151,913,031
was managed on a discretionary basis and $15,287,524,252 was managed on a non-discretionary basis.
Strategic collaborates with each client when determining appropriate risk and return objectives, developing
an appropriate investment policy, and generally assuming discretionary responsibility for day-to-day
management and investment of the client’s account.
Specifically, Strategic’s comprehensive discretionary management services may include:
• Investment policy review/asset allocation study, as needed, for separately-managed portfolios.
• Comprehensive discretionary active management of the assets, including the following.
o Asset allocation
o Asset class structuring (i.e., within each asset class, where there are key decisions to be
made, such as large cap vs. small cap, developed vs. emerging markets, etc.)
o Manager sourcing, due diligence, selection, contract negotiation and execution, monitoring
o Oversight of the implementation of investment decisions
o Comprehensive risk management and risk budgeting
o Selection and oversight of alternatives strategies
o Implementing strategies such as portable alpha
o In-house asset management for efficient passive exposure
• Broad back office services, including coordination with providers
as necessary (e.g., custodian,
managers), and audit and tax support
• Education for investment committee members
• Dedicated relationship management and comprehensive reporting
As part of its management of client accounts, Strategic may, in accordance with its investment advisory
agreements with its clients, retain the services of sub-adviser(s) to manage certain sectors of client
portfolios. Sub-advisers are selected and terminated on the basis of Strategic’s assessment of their ability
to provide value added net of management fees and other costs, over and above explicit absolute and/or
relative yardsticks on an absolute and risk-adjusted basis. Any such sub-advisers are either registered
under the Investment Advisers Act of 1940 (“Advisers Act”) or exempt from registration. Strategic may
enter into a separate investment advisory agreement on behalf of a client with each sub-adviser or may
invest client assets in investment funds managed by Strategic or third parties. Sub-advisers and investment
funds selected by Strategic may include affiliates of Strategic and specialized proprietary strategies
managed by Strategic.
Strategic Private Equity Management III, LLC, Strategic Private Equity Management IV, LLC and Strategic
Private Equity Management (GP), L.P. (together the “General Partners”) are special purpose entities formed
by Strategic for the purpose of acting as general partners of certain private funds for which Strategic is the
Strategic was founded in 1987 and is a privately-held limited liability company. Its principal interest holders
are (i) Northill US Holdings II Inc., part of the Northill Capital Group (“Northill”), and (ii) certain employees
of Strategic. Northill acquired its interest in Strategic in February 2019 from FFL Partners, LLC, which
previously held their ownership interest of Strategic through the limited liability company, FFL CP III/SIM