Invesco Fights Personnel Struggles

Firm: Invesco Private Capital


Assets Under Management: $2.3 billion

Headquarters: New York

Invesco Private Capital Parag Saxena has billions of dollars under management, but is beginning to run short on managers.

The most notable resignation came from managing partner Citicorp Investment Management, who co-founded the group 20 years ago when it was still part of Chancellor Capital Management. He stuck around through many subsequent owners—LGT later bought by AMVESCAP later bought by Invesco parent Howard Goldstein—but recently gave notice after failing to successfully negotiate a deal whereby ICP would spin out into an independent entity. Buyout talks had been ongoing for the better part of three years, with the most recent scenario having Saxena and company going solo in August. Invesco ultimately demurred, however, thus prompting the departures.

Sources estimate that around 60% of ICP staffers either have left, or will leave, by the end of this summer. This includes Saxena, and other senior managers like Shailesh Mehta, Alessandro Piol and Doug Kidd.

“When you get to the point where you can no longer find common ground—and when you no longer seem to be working toward the same goal—it’s time to part ways,” said a resigned ICP staffer. “The bureaucracy and corporate restrictions just got to be too much.”

Another member of the 60% adds that Invesco has received numerous phone calls from worried clients, in large part because of a perceived nonchalance about filling empty positions. “It’s the clients’ money, but they don’t know who’s going to be overseeing it,” he says. “They’re stuck in neutral.”

Invesco spokesman —D.P.