Asset Management Department Creation
Building a new department from scratch to oversee $18B in deployed capital — and delivering returns 200 bps above the cost of capital.
The Opportunity
With $18B in deployed capital, the firm had no dedicated function overseeing portfolio-level returns, capital recycling opportunities, or asset-level performance optimization. There was no systematic mechanism to ensure assets continued to earn above the cost of capital throughout their lifecycle.
The Build
Recognized the gap and built strong relationships with the CIO and key leaders to spearhead the creation of an entirely new department. Leveraged state-of-the-art machine learning on historical operating data to identify underperforming assets and opportunistic capital recycling opportunities.
The Outcome
The department achieved IRRs consistently 200 basis points above WACC, translating to an earnings lift of approximately $0.02 per share annually. The framework created a repeatable, scalable discipline for ongoing portfolio optimization aligned with the Board's focus on capital efficiency.
Methodology: IRRs measured on realized dispositions and recycled capital against the firm's weighted average cost of capital at the time of each transaction; earnings impact expressed on an annualized per-share basis.
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Every engagement begins with a candid conversation about whether this kind of work is a fit for your situation.