Six out of the seven members of Standard Life Investments’ US private equity fund of funds team have left the company, including the team’s head Dan Cahill. The departures come one month after Standard Life sold a 40 percent stake of its private equity business to nine managers based in its Edinburgh office.
The mass exodus also comes one year after the division’s chief executive Jonny Maxwell walked away from the fund of funds business he had built over nearly two decades, after failing to agree a buyout with Standard Life. In August Maxwell took over as global head of Allianz’s indirect private equity business in London.
“They left without giving notice or warning of their intentions,” a spokesman for Standard Life Investments said. He declined to comment further on the situation because the firm is currently “in discussions with lawyers”.
The Boston team raised a $300 million (€212 million) fund of funds this year, of which $275 million is already committed, according to the spokesman. As an interim measure, the Edinburgh team will manage the US portfolio, he said.
The spokesman said the departure of the team would not cause a crisis for the firm, as Standard Life Investments' US fund of funds represents just 3 percent of the firm’s third party private equity assets, and 2.5 percent of its total private equity assets.
Standard Life’s private equity business has assets under management of $6.2 billion.