OppenheimerFunds

Last updated
OppenheimerFunds, Inc.
Industry Financial services
Founded1959;65 years ago (1959)
Founder Leon Levy
DefunctMay 24, 2019;5 years ago (2019-05-24)
FateAcquired by Invesco
Headquarters
New York
,
United States
Key people
Martin Flanagan, CEO
AUM $260 billion (As of 28 February 2019) [1]

OppenheimerFunds, Inc. was a global asset manager. As of February 28, 2019, the company managed over $260 billion in assets in over 13,000,000 investor accounts. [1] In May 2019, the company was acquired by Invesco. [2] OppenheimerFunds had 16 investment management teams that oversaw actively managed equity, fixed income, alternative, and multi-asset portfolios, and exchange-traded funds. [1] Customers included financial advisors and wealth managers and their clients, as well as institutional investors, corporations, financial endowments, foundations, and sovereign wealth funds.

Contents

History

1959-2019

The company was founded in 1959. [1] In 1987, British and Commonwealth Holdings acquired Mercantile House and gained control of OppenheimerFunds. [3] OppenheimerFunds was acquired by Massachusetts Mutual Life Insurance Company in 1990 [4] for $150 million. [5]

Bill Glavin was CEO of OppenheimerFunds from 2009 to 2014. He also served as chair. [5] Arthur Steinmetz became president in 2013, CEO in July 2014, and chairman in 2015, simultaneously serving in all three roles. [6]

In July 2012, OppenheimerFunds acquired SteelPath, enabling clients to invest in master limited partnerships. [7] The firm acquired RevenueShares in 2015 to expand its offerings into the smart beta space. [8] In 2016 it launched a suite of smart beta exchange-traded funds, including environmental, social and corporate governance offerings. [9]

In 2017, it acquired SNW Asset Management, expanding its fixed income offerings into high-quality municipal bonds and customized separately managed accounts. [10] The firm opened its headquarters for Europe, the Middle East and Africa (EMEA) in London in October 2017. [11] Also in October 2017, the firm formed a joint venture with The Carlyle Group to provide global private credit for high-net-worth individuals and advisors primarily focused on the U.S. market. [12] In September 2018, OppenheimerFunds had $248 billion in funds under management. [2] In October 2018, OppenheimerFunds was operating as a subsidiary of Massachusetts Mutual Life Insurance. [13]

2019-2024

As of February 28, 2019, the company managed over $260 billion in assets in over 13,000,000 investor accounts. [1] On May 24, 2019, Invesco acquired the company [14] for about $5 billion. [2] It was the largest fund management mergers and acquisitions deal since 2014, when TIAA-CREF purchased Nuveen for $6.3 billion. [15] As part of the acquisition, OppenheimerFunds’ parent company MassMutual took 15.5% of Invesco. [16] CEO Arthur Steinmetz was slated to leave after the Invesco purchase. Instead, Invesco CEO and president Martin Flanagan was announced as Steinmetz's successor. [6] Steinmetz had left by June 2019. Also that month, Invesco appointed five trustees to its board who had previously been on OppenheimerFunds' older boards. [17]

In March 2019, Invesco announced it was cutting 850 jobs at Oppenheimer's office in the Denver area. At the time, around 1000 people worked there. Invesco called the firings necessary to achieve its "$475 million dollar cost synergy target" it had set for itself after the acquisition. It was the most job cuts by a single employer in Colorado since 2015. [18]

Philanthropy

The firm's corporate philanthropy initiatives included its 10,000 Kids by 2020 program, which aimed to introduce 10,000 students to numeracy programs through nonprofit partnerships and active employee volunteerism. The firm worked with organizations including the National Museum of Mathematics, the Boys & Girls Clubs of America, and Cross-Cultural Solutions. [19]

Awards and recognition

OppenheimerFunds was named as the Best Place to Work in Money Management for 2017 by Pensions & Investments . [20]

Fortune named the firm one of the 40 Best Workplaces in Financial Services [21] and Insurance, and 25 Best Large Workplaces in New York. [22]

In 2019, the company earned 19 Lipper Fund Awards in four asset classes. [1]

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References

  1. 1 2 3 4 5 6 "OppenheimerFunds Receives 19 Lipper Fund Awards" (Press release). PR Newswire. March 8, 2019.
  2. 1 2 3 Wigglesworth, Robin (September 21, 2018), Invesco nears $5bn deal to buy OppenheimerFunds, The Financial Times , retrieved November 5, 2024{{citation}}: CS1 maint: year (link)
  3. ↑ PORTER, JANET (July 16, 1987). "BRITISH & COMMONWEALTH TO BUY UK FINANCE GROUP". The Journal of Commerce .
  4. ↑ "Massachusetts Mutual to purchase Oppenheimer". United Press International . August 1, 1990.
  5. 1 2 Segal, Julie (May 15, 2019), Why MassMutual Chose to Sell Oppenheimer Funds, Institutional Investor , retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  6. 1 2 Whyte, Amy (February 8, 2019), OppenheimerFunds CEO to Leave After Invesco Acquisition, Institutional Investor , retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  7. ↑ "OppenheimerFunds buys infrastructure MLP manager SteelPath". pionline.com. 2012-07-18. Retrieved 2019-09-10.
  8. ↑ "OppenheimerFunds Expands into Smart Beta ETFs with Acquisition of VTL" (Press release). PR Newswire. September 9, 2015.
  9. ↑ "ETF Watch: Oppenheimer Launches Socially Responsible Funds". ETF.com. October 31, 2016.
  10. ↑ "OppenheimerFunds to Acquire SNW Asset Management, Expanding into High-Quality Muni SMA" (Press release). PR Newswire. March 6, 2017.
  11. ↑ "OppenheimerFunds Opens EMEA Headquarters in London" (Press release). PR Newswire. October 23, 2017.
  12. ↑ "OppenheimerFunds and The Carlyle Group Form Joint Venture for Wealth Market" (Press release). PR Newswire. October 16, 2017.
  13. ↑ Kapadia, Reshma (October 18, 2018), Invesco CEO Martin Flanagan on the OppenheimerFunds Acquisition, Barron's , retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  14. ↑ "Invesco and MassMutual complete strategic combination of Invesco and OppenheimerFunds" (Press release). PR Newswire. October 23, 2017.
  15. ↑ Henderson, Richard (July 25, 2019), Costs of OppenheimerFunds acquisition weigh on Invesco, The Financial Times , retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  16. ↑ Reeve, Nick (October 22, 2018), Invesco to acquire OppenheimerFunds in $5.7bn deal, IPE, retrieved November 5, 2024{{citation}}: CS1 maint: year (link)
  17. ↑ B. Hughes, Bridget (June 25, 2019), Invesco Moves Swiftly After Its Acquisition of OppenheimerFunds, Morningstar, retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  18. ↑ Rubino, Joe (March 22, 2019), Invesco to lay off 850 Denver area workers as it absorbs OppenheimerFunds, Denver Post , retrieved November 5, 2024{{citation}}: CS1 maint: year (link)
  19. ↑ "OppenheimerFunds Launches Math Literacy Program: 10,000 Kids by 2020" (Press release). PR Newswire. October 26, 2016.
  20. ↑ "OppenheimerFunds". PIOnline. December 11, 2017.
  21. ↑ "40 Best Companies in Financial Services". Fortune . March 28, 2017.
  22. ↑ "Best Companies to Work For: 25 Best Large Workplaces in New York". Fortune . July 18, 2017.
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