California-based advisory firm PCG Asset Management is beginning to experience some of the senior staff turnover which has plagued its parent, Pacific Corporate Group.
Jay Rose, PCG AM’s head of research and a managing director, has left the firm to “pursue other interests”, according to a statement.
“We're saddened to see him go. He's a great guy,” chief executive David Fann told PEO. “He wanted to do other things.”
Meanwhile, two vice presidents, Kenn Lee and Mike Taylor, have been brought on board, whom Fann says aren't to replace Rose per se.
“As we grow as a firm we need more resources,” Fann said. “We're not looking for anybody to replace Jay specifically, but we are looking to add people primarily on the investment side.”
Lee has held investment roles at firms including ClearLight Partners and Thoma Cressey Equity Partners, and Taylor was most recently involved in institutional sales at ITG, and was vice president of investor relations and marketing at Advent Capital.
Significant senior staff turnover at PCG, which sources have attributed to founder Christopher Bower’s unwillingness to extend ownership to employees, led to the spin-out of PCG AM in February. The new firm and its employee-ownership structure was applauded by The California Public Employees' Retirement System.
A handful of PCG AM employees will eventually own up to a 50 percent stake in the firm; as of April, nine members of senior management owned a 25 percent stake, but that number has dropped to eight with Rose's departure.
“As we hire more professionals, more of them will be particpants in the equity programme,” Fann said.
PCG AM has also opened an office in New York, complimenting its Boston location and La Jolla, California, headquarters. In conjunction with its affiliates, it may soon open offices in Europe and or the Asia Pacific regions, Fann said.
The firm manages more than $15 billion in private equity commitments via fund of funds, separate accounts and advisory relationships.