Advisory Business & Ownership:
Shepherd Kaplan LLC (Shepherd Kaplan, SK, or us/we) was founded in 1998 by David Shepherd and
David Kaplan. In November 2017 SK combined its business with GRT Capital Partners, L.L.C. (GRT), a
Boston-based asset manager, which was then renamed Shepherd Kaplan Krochuk, LLC (SKK). The
transaction resulted in SK becoming a majority-owned and wholly-controlled subsidiary of SKK, with SKK
as SK’s sole manager. The Management Board of SKK is comprised of David Shepherd, David Kaplan,
Timothy Krochuk, Stephen Brackett, and Brian Lockhart, who together indirectly own the company. For
ease of reference these individuals may also be referred to as “Principals.” The Principals are also members
of SKK Group, LLC, which serves as the managing member of the general partner or manager, of a number
of private investment funds affiliated with SKK. Stephen Brackett is President and Co-Head of Alternative
Investments at SKK, and Tim Krochuk is also Co-Head of Alternative Investments. Timothy Krochuk was
also a member and founder of GRT Capital Partners, LLC. Brian Lockhart is CEO and CIO of Peak Capital
Management, LLC (PCM), an SEC-registered investment adviser based in Greenwood Village, Colorado
which was acquired in February 2020 by SKK. Please refer to Item 10 for more information regarding SK’s
relationship with SKK and other affiliates. Effective March 2023, Bayard Dodge replaced David Kaplan
as Chief Compliance Officer of SKK and SK.
While SKK is the overarching adviser of all the clients of the firm (excluding PCM), SK, the wealth
management division of the firm, provides wealth and institutional advisory services to certain SKK clients
in a sub-advisory capacity. David Shepherd and David Kaplan, who were the founders of SK, remain its
Co-CEOs and Co-Chief Investment Officers, and as such are primarily responsible for managing the wealth
management services provided by SKK. Where this document refers to “clients” of SK, that term should
be understood to mean that they are advisory clients of SKK, and SK is sub-adviser with respect to their
accounts. Where this document refers to “SK portfolios,” that term should be understood to mean portfolios
sub-advised by SK.
Readers who are primarily interested in the wealth management services provided by SK should read this
brochure. Readers who are primarily interested in the asset management advisory services provided by
SKK directly and the relationship of SKK with its wealth management clients, including fees charged to
such clients and conflicts of interests (which are also discussed in Item 11 of this brochure), should also
read SKK’s separate Form ADV Part 2A brochure available at www.adviserinfo.sec.gov.
Although SKK is the Managing Member of PCM, PCM is currently operated as a separate advisory business
from both SKK and SK, and this brochure does not address the services provided by PCM to its clients.
Readers who are primarily interested in the investment advisory services provided by PCM directly should
read PCM’s separate Form ADV Part 2A brochure available at www.adviserinfo.sec.gov.
With an office in Boston (Headquarters), SK provides advisory services to institutional, private, and
charitable foundation clients.
Institutional clients include public and private companies and institutions in the healthcare and educational
fields. Private clients include ultra-high-net-worth individuals, families, trusts, and family
offices. Endowment and Foundation clients include donor advised funds, and family, private and
community foundations. In managing clients’ assets, SK considers their specific investment objectives and
tailors its advisory services accordingly. SK’s general approach is to manage clients’ assets in a non-
discretionary manner; however, discretionary relationships are also possible if they are more suitable to the
clients’ needs.
Technology – A Core Competitive Differentiator:
A core component of the SK’s business model is our advanced technology platform, developed by SK over
more than a decade. This technology platform allows SK to generate technology-enhanced overviews of a
client’s asset allocation; structure extensive manager searches, manager evaluations and monitoring; and
provide our clients with transparent aggregation of data and performance analytics.
This platform not only enables us to conduct sophisticated quantitative analysis on managers and
investments, but it also incorporates “early warning analytics” which permit us to identify certain issues
before they become problems.
Institutional Clients:
For most institutional clients, our advisory services begin with a complete review of their investment
portfolio, fiduciary controls, and key vendor relationships, where requested. Next, a manager search is
typically conducted in each recommended asset class. These searches look at the behavioral characteristics
of each investment relative to its peer group, and corresponding indices. Finally, an Investment Policy
Statement (IPS) is generally created, and a portfolio is constructed to meet the client’s goals and objectives,
risk/return, cost, and liquidity needs. SK portfolios can incorporate client-imposed requirements and
restrictions such as the inclusion and/or exclusion of certain securities or types of securities.
With respect to institutional retirement plans, we expressly acknowledge our co-fiduciary status to such
plans and assist clients in implementing investment management procedures that meet or exceed the
standards set by the Employee Retirement Income Security Act (ERISA) and the Department of Labor.
With respect to Individual Retirement Accounts, our ERISA practices vary on a case-by-case basis.
The principal components of our fiduciary process are the creation of an IPS and the generation and
preservation of documentation demonstrating the prudent selection, monitoring, and replacement of
investments. In addition, we assist clients in identifying and reviewing their specific custody and
administration needs and aid in the selection of the most appropriate key vendors. We are committed to
uncovering and recapturing costs associated with our sub-advisory clients’ retirement plans for the benefit
of the plans. Specific services include, where requested:
Investment Services:
• Assist in establishing investment policies, identifying appropriate levels of risk, return and
liquidity objectives,
• Recommend target asset allocation strategies and investment manager structures to meet
investment objectives,
• Conduct manager searches and recommend investments and investment managers across all
asset classes and structures, which may include mutual funds, separate accounts, and alternative
investments,
• Monitor investment managers and provide, at a minimum, quarterly detailed portfolio
performance reporting,
• Recommend rebalancing strategies,
• Recommend appropriate performance standards to evaluate investment managers, and
• Create model portfolios for defined contribution plans.
Administrative Services:
• Review and supervise custody, trust, and administrative services, as needed,
• Comprehensively analyze portfolio expenses and implement appropriate cost controls, and
• Provide “request for proposal” (RFP) services for selection of custodians and administrators.
Fiduciary Risk Management Services:
• Expressly assume fiduciary status in providing investment advice,
• With respect to institutional retirement plans subject to ERISA, we assume discretion in one or
two manners where agreed upon:
(i) serving as an investment manager, as defined in section 3(38) of ERISA, and/or
(ii) serving as the plan’s “named fiduciary” for plan-level investment matters
• Offer outsourced chief investment officer and outsourced chief investment committee fiduciary
services,
• Provide educational services for client fiduciaries,
• Customize, implement, and manage SK’s proprietary Fiduciary Governance and Document
Archiving System for clients. Capabilities include:
A central archiving repository for documents in support of fiduciary and investment
activities with variable security access for authorized parties and query able data
structure,
Integrated communication and approval capabilities,
Secure transmittal of all documents and reports, and
Integrated process management and notification capabilities.
Private Clients:
For private clients, we act as their
Chief Investment Officer, providing the investment-related information
and advice necessary to assist them in achieving their financial goals. SK employees have experience and
expertise in financial planning, asset allocation, investment selection and monitoring, performance
reporting, and coordinating with tax and estate planning professionals.
The portfolio planning process begins with an analysis of a client’s current financial condition and
interviews to uncover their financial goals and requirements. Next, a comprehensive financial model is
created to analyze the impact of future cash flows and market volatility. Finally, an IPS is created, and a
portfolio is constructed with sensitivity to tax efficiency, cost, liquidity, and income and growth needs. SK
sub-advised portfolios can incorporate client-imposed requirements and restrictions such as the inclusion
and/or exclusion of certain securities or types of securities. We manage both discretionary and non-
discretionary portfolios. Specific services include:
Investment Services:
• Assist in establishing investment policies, identifying appropriate levels of risk, return and
liquidity objectives,
• Recommend target asset allocation strategies and investment manager structures to meet
investment objectives,
• Conduct manager searches and recommend investments and investment managers across all
asset classes and structures, which may include mutual funds, separate accounts, and alternative
investments,
• Provide tax sensitive implementation and management of investment strategies,
• Monitor investment managers and provide, at a minimum, quarterly detailed portfolio
performance reporting,
• Recommend rebalancing strategies,
• Recommend appropriate performance standards to evaluate investment managers,
• Recommend custodial and other service providers to optimize access to investments, quality of
reporting and cost efficiency,
• SK provides sub-advisory services to clients realizing certain forms of potentially taxable income
arising from their disposition of interests in Qualified Small Businesses, as that term is defined in
26 U.S.C. § 1202, et seq. While SK does not provide tax advice, it provides sub-advisory services
concerning investment of the proceeds of a sale of interests in a Qualified Small Business, into one
or more successive Qualified Small Businesses, with the objective of facilitating certain tax benefits
pursuant to 26 U.S.C. § 1202, et seq., and
• In appropriate cases, introduce opportunities for investments in private companies or other niche
opportunities.
Wealth Management Services:
• Provide cash flow analysis and reporting,
• Coordinate investment strategies with tax and legal counsel,
• Recommend tactics to mitigate and manage financial risk,
• Customize, implement, and manage SK’s proprietary Fiduciary Governance and Document
Archiving System for clients. Capabilities include:
A central archiving repository for documents in support of fiduciary and investment
activities with variable security access for authorized parties and query-able data
structure,
Integrated communication and approval capabilities,
Secure transmittal of all documents and reports, and
Integrated process management and notification capabilities.
Family Office Services:
• Assist clients in the selection of tax advisors to perform tax reviews & filings,
• Coordinate tax planning and preparation,
• Coordinate investment strategies with tax and legal counsel,
• Provide cash flow analysis and reporting,
• Recommend tactics to mitigate and manage financial risk,
• Wealth protection, transfer analysis, and planning related to the management of all types of
assets and income sources,
• Professional guidance regarding wealth transfer to succeeding generations,
• Philanthropic planning,
• Budget services, including wealth reviews, analysis of short- and medium-term liquidity
requirements, and long-term objectives,
• Assist in the selection and management of estate planning counsel, and
• Family governance planning.
As part of SK’s Family Office Services offering, SK may refer clients to certain preferred service providers.
While such arrangements do not involve direct compensation to SK and referrals do not constitute
investment advice, they may present a conflict if SKK in the future pursues direct relationships with such
providers. SKK monitors these relationships to ensure that, should a conflict of interest arise, all relevant
information is disclosed to its advisory clients.
Endowment & Foundation Clients:
To our Endowment & Foundation (E&F) clients, we offer expertise to meet their particular needs and goals.
Our approach focuses on providing custom portfolios for both short and long-term client goals that
incorporate client-imposed requirements and restrictions such as the inclusion and/or exclusion of certain
securities or types of securities.
Our E&F sub-advisory services are provided with an emphasis on meeting the institution’s distribution
needs through varied market conditions. We provide attention to overall cost containment and management
as well as specialized governance and fiduciary risk services, including education and presentations to the
institution’s staff and board.
We expressly acknowledge our co-fiduciary status and assist our clients in implementing investment
management procedures intended to meet or exceed the distribution needs defined by each client.
The principal components of our fiduciary process are the creation of an IPS and the generation and
preservation of documentation demonstrating the prudent selection, monitoring, and replacement of
investments. In addition, we assist sub-advisory clients in identifying and reviewing their specific custody
and administration needs and aid in the selection of the most appropriate vendors. For sub-advisory clients
that do not have an existing spending policy in place, we craft, implement, and reinforce a spending policy
that meets their needs. Specific services include:
Investment Services:
• Assist in establishing investment and spending policies, identifying appropriate levels of risk,
return and liquidity objectives,
• Recommend target asset allocation strategies and investment manager structures to meet
investment objectives,
• Conduct manager searches and recommend investments and investment managers across all
asset classes and structures - structures include mutual funds, separate accounts, and alternative
investments,
• Monitor investment managers and provide, at minimum, quarterly detailed portfolio
performance reporting,
• Recommend rebalancing strategies,
• Recommend appropriate performance standards to evaluate investment managers,
• Assist in Cash Flow and Liquidity management.
Administrative Services:
• Review and supervise custody, trust, and administrative services, as needed,
• Comprehensively analyze portfolio expenses and implementation of cost controls, and
• Provide RFP services for selection of custodians and administrators.
Fiduciary Risk Management Services:
• Expressly assume fiduciary status in providing investment advice,
Provide services on a Discretionary or Non-Discretionary basis
• Offer outsourced Chief Investment Officer (OCIO) and outsourced Chief Investment
Committee (OCIC) fiduciary services
• Provide educational services for client fiduciaries,
• Customize, implement, and manage SK’s proprietary Fiduciary Governance and Document
Archiving System for clients. Capabilities include:
A central archiving repository for documents in support of fiduciary and investment
activities with variable security access for authorized parties and query-able data
structure,
Integrated communication and approval capabilities,
Secure transmittal of all documents and reports, and
Integrated process management and notification capabilities.
We do not provide legal, tax or accounting advice or services; clients should not assume that we are
providing such services at any time.
Wrap Fee Programs:
SK does not participate in “wrap fee” programs.
Assets Under Management (AUM):
As of December 31, 2023, Shepherd Kaplan’s assets under management were as follows:
Total AUM: $ 8,617,780,105
Discretionary: $ 756,118,095
Non-Discretionary: $ 7,861,662,010