Brinson Partners
Encyclopedia
Brinson Partners was an asset management firm focused on providing access for U.S. institutions to global markets. The firm was founded by noted investor Gary P. Brinson
in the 1980s and established as an independent firm in 1989. Brinson was acquired by Swiss Bank Corporation
in 1994 and became the core of the Swiss bank's asset management business in the U.S.
The firm was headquartered in Chicago, Illinois and Swiss Bank Corporation
's successor, UBS still maintains a significant asset management business there with former executives of Brinson Partners.
joined the trust department of First National Bank of Chicago as chief investment officer in 1979. By 1981, Brinson had assembled the team that would become First Chicago Advisors and later Brinson Partners.
First Chicago Advisors became a separate money management company in 1983. Through the 1980s, Brinson established himself as a pioneer in the development of the theory of asset allocation
Brinson pushed for allocation across stocks, bonds, cash, real estate, venture capital and other alternative asset classes using simple cost effective investment strategies. This would largely became conventional wisdom among money managers in the 1990s.
of his firm from First Chicago Corporation, acquiring approximately 75% of the company with a large group of partners and investors. Over the next five years built up the firm to approximately $36 billion of assets under management. Brinson focused on providing access for U.S. institutions to global markets. The firm, which also managed a series of mutual funds, had emerged as one of largest managers of pension plans in the U.S.
In 1994, Swiss Bank Corporation
was in the midst of a series of acquisitions that included O'Connor & Associates
, S.G. Warburg & Co., Dillon Read & Co. and culminated in the bank's merger with the Union Bank of Swtizerland in 1998. Swiss Bank announced the acquisition of Brinson Partners and brought in Brinson to run the bank's asset management unit. Swiss Bank Corporation
paid $750 million to acquire Brinson Partners, resulting in a profit to Brinson and his partners of $460 million on the sale of their 75% stake in the company.
Following the acquisition of Brinson Partners, Gary Brinson ran Swiss Bank's asset management business and after the merger with UBS, Brinson was named chief investment officer of UBS Global Asset Management.
(owned by Union Bank of Switzerland
) and Brinson Partners (owned by Swiss Bank Corporation
). The investment teams were merged in 2000 and in 2002 the brands were consolidated as UBS Global Asset Management.
As of 2010, UBS Asset Management was responsible for more than 569 billion CHF of invested assets across its various asset classes and investment strategies. With over 3,500 employees in 25 countries, UBS is largest mutual fund
manager in Switzerland and the largest manager of fund of hedge funds in the world. UBS Asset Management has major offices in London, Chicago, Frankfurt, Hartford, Hong Kong, New York, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich.
Gary P. Brinson
Gary P. Brinson is a former investor and money manager. He is the founder of Brinson Partners a Chicago-based asset management firm acquired in 1994 by Swiss Bank Corporation, the predecessor of UBS...
in the 1980s and established as an independent firm in 1989. Brinson was acquired by Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
in 1994 and became the core of the Swiss bank's asset management business in the U.S.
The firm was headquartered in Chicago, Illinois and Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
's successor, UBS still maintains a significant asset management business there with former executives of Brinson Partners.
Early history at First Chicago
Gary P. BrinsonGary P. Brinson
Gary P. Brinson is a former investor and money manager. He is the founder of Brinson Partners a Chicago-based asset management firm acquired in 1994 by Swiss Bank Corporation, the predecessor of UBS...
joined the trust department of First National Bank of Chicago as chief investment officer in 1979. By 1981, Brinson had assembled the team that would become First Chicago Advisors and later Brinson Partners.
First Chicago Advisors became a separate money management company in 1983. Through the 1980s, Brinson established himself as a pioneer in the development of the theory of asset allocation
Asset allocation
Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame.-Description:...
Brinson pushed for allocation across stocks, bonds, cash, real estate, venture capital and other alternative asset classes using simple cost effective investment strategies. This would largely became conventional wisdom among money managers in the 1990s.
Independence and acquisition
In 1989, Gary Brinson led a $100 million management buyoutManagement buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
of his firm from First Chicago Corporation, acquiring approximately 75% of the company with a large group of partners and investors. Over the next five years built up the firm to approximately $36 billion of assets under management. Brinson focused on providing access for U.S. institutions to global markets. The firm, which also managed a series of mutual funds, had emerged as one of largest managers of pension plans in the U.S.
In 1994, Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
was in the midst of a series of acquisitions that included O'Connor & Associates
O'Connor & Associates
O'Connor & Associates was a Chicago-based options trading firm, with particular emphasis on financial derivatives. The firm was acquired by Swiss Bank Corporation O'Connor & Associates was a Chicago-based options trading firm, with particular emphasis on financial derivatives. The firm was...
, S.G. Warburg & Co., Dillon Read & Co. and culminated in the bank's merger with the Union Bank of Swtizerland in 1998. Swiss Bank announced the acquisition of Brinson Partners and brought in Brinson to run the bank's asset management unit. Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
paid $750 million to acquire Brinson Partners, resulting in a profit to Brinson and his partners of $460 million on the sale of their 75% stake in the company.
Following the acquisition of Brinson Partners, Gary Brinson ran Swiss Bank's asset management business and after the merger with UBS, Brinson was named chief investment officer of UBS Global Asset Management.
UBS Global Asset Management
Since the merger of UBS and SBC in 1998, UBS has been among the largest asset management firms in the world. The merger and subsequent restructuring resulted in the combination of three major asset management operations: UBS Asset Management, Phillips & DrewPhillips & Drew
Phillips & Drew was a large stockbroking partnership and company based in the City of London, England. It was fully acquired by the Union Bank of Switzerland in 1986, which itself merged with the Swiss Bank Corporation in 1998, to become UBS AG....
(owned by Union Bank of Switzerland
Union Bank of Switzerland
Union Bank of Switzerland was a large integrated financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second...
) and Brinson Partners (owned by Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
). The investment teams were merged in 2000 and in 2002 the brands were consolidated as UBS Global Asset Management.
As of 2010, UBS Asset Management was responsible for more than 569 billion CHF of invested assets across its various asset classes and investment strategies. With over 3,500 employees in 25 countries, UBS is largest mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
manager in Switzerland and the largest manager of fund of hedge funds in the world. UBS Asset Management has major offices in London, Chicago, Frankfurt, Hartford, Hong Kong, New York, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich.
External links
- The Brinson Foundation - non-profit organization supporting educational, public health and scientific research programs