Annual Letter: Reflecting on a Year of Growth and Achievement
2024 marked a series of milestones for Aristotle Pacific, including a record number of clients and AUM.
Annual Letter: Reflecting on a Year of Growth and Achievement
2024 marked a series of milestones for Aristotle Pacific, including a record number of clients and AUM.
Contents
(Note: As we send this letter, Los Angeles County is experiencing the worst wildfires in its history. Our hearts go out to all those affected by these devastating fires, especially the thousands who have lost their homes and the first responders who’ve risked their lives.)
To Clients, Partners, and Friends of Aristotle Pacific Capital:
When reflecting on 2024, I do so with a great deal of pride. We increased our institutional client base to firm highs, and, more importantly, I believe performed well for them. Closely related, our AUM finished over $30 billion at year’s end. Key investment hires were made to further strengthen our already deep investment team. We also launched a new investment strategy and elevated our investment content. And notably, we did all this in our first full year as an affiliate of Aristotle Capital Management, demonstrating the synergies created by joining forces.
Clients – To our valued clients, thank you for trusting us to serve you. This year, we are thrilled to welcome over 30 additional institutional and advisory relationships that have chosen to entrust us. With the growth of our client base, Aristotle Pacific now has the distinct honor of serving over 100 institutional clients. This expansion not only reflects our commitment to excellence but also underscores the confidence you place in us.
Team Additions – At the core of our commitment to you is the team at Aristotle Pacific. We continue to invest in our existing team and have added talented professionals across the organization. In 2024, experienced professionals joined our legal, client service, finance, research and portfolio management departments. I would like to highlight two senior investment professionals who joined us during the fourth quarter:
- Ivor Schucking, a 32-year veteran in the industry, joined our team as a managing director and head of credit research. He will be leading the credit analyst team while also covering the financials sector. Prior to joining, Ivor spent over 14 years as a senior research analyst and global head of Financials Credit Research at Western Asset Management. Before Western Asset, Ivor spent over 12 years at PIMCO as a credit analyst and head of Global Credit Research and four years at Strong Capital Management as director of Credit Research. Ivor earned a bachelor’s degree from New York University and an MBA from New York University Stern School of Business.
- Jeff Klingelhofer, a 20-year veteran, joined the team as a managing director and portfolio manager. Jeff was added to the portfolio management team of our newly launched Credit Opportunities strategy. Jeff will also be working with the existing investment-grade and multi-sector investment team to further implement securitized investment ideas. Prior to joining, Jeff was co-head of investments at Thornburg Investment Management and a portfolio manager on all fixed-income strategies. Prior to Thornburg, Jeff was with PIMCO at its Newport Beach, Tokyo and London offices. He holds a bachelor’s degree from UC Irvine and an MBA from University of Chicago Booth School of Business.
We feel fortunate these talented, experienced and respected investment professionals have joined us. Additionally, with Ivor taking over as head of credit research, Bob Boyd, the firm’s prior head of credit research, will focus on portfolio management responsibilities across our floating-rate and CLO platforms.
Assets – As we enter 2025, our assets stand at just over $30 billion, a healthy increase from last year's opening at $24.5 billion. With fixed-income returns mixed in 2024, the growth was generally through new relationships and additional flows across multiple investment strategies. We continue to be humbled by the steadfast support from our clients and partners.
Investor Sentiment 180 – Entering 2024, the investor narrative was built on delayed 2023 expectations: aggressive Fed rate cuts, lower long-term rates, a slowing economy, and increased risk premiums. Once again, the economy and markets beat expectations—penalizing fear and underinvested capital. While the Fed did lower rates, longer-term rates went higher to the chagrin of most prognosticators, and risk premiums, including credit spreads, tightened. Entering 2025, investors expect rates to remain at current levels (with many predicting even higher long-term rates), economic optimism, and a continuation of the risk rally. In these changing currents, we have strengthened our hull and kept our sails agile as we navigate the evolving market opportunities.
Credit Opportunities – In reference to the previously mentioned Credit Opportunities strategy, we want to offer our focused, tested, and high-performing skillset in a less constrained, high-spread strategy. This is a multi-sector strategy focused on higher spread credit and securitized investments utilizing our unique perspective on relative value, experienced credit research, and active portfolio management capabilities. The portfolio was launched in December, and we expect this offering to be a compelling approach for many fixed-income allocators.
The Little Book of Credit – In July, we published the inaugural issue of “The Little Book of Credit,” a quarterly publication designed to demystify the world of credit. The reception has been overwhelmingly positive. We encourage you to explore “The Little Book of Credit” on our website and welcome feedback.
“Gratitude is not only the greatest of virtues, but the parent of all others.” —Cicero
Thank you for your support and confidence in Aristotle Pacific Capital. We are prepared for the opportunities and challenges 2025 has in store and welcome any questions.
Dominic Nolan, CFA
CEO
Aristotle Pacific Capital
(Note: As we send this letter, Los Angeles County is experiencing the worst wildfires in its history. Our hearts go out to all those affected by these devastating fires, especially the thousands who have lost their homes and the first responders who’ve risked their lives.)
To Clients, Partners, and Friends of Aristotle Pacific Capital:
When reflecting on 2024, I do so with a great deal of pride. We increased our institutional client base to firm highs, and, more importantly, I believe performed well for them. Closely related, our AUM finished over $30 billion at year’s end. Key investment hires were made to further strengthen our already deep investment team. We also launched a new investment strategy and elevated our investment content. And notably, we did all this in our first full year as an affiliate of Aristotle Capital Management, demonstrating the synergies created by joining forces.
Clients – To our valued clients, thank you for trusting us to serve you. This year, we are thrilled to welcome over 30 additional institutional and advisory relationships that have chosen to entrust us. With the growth of our client base, Aristotle Pacific now has the distinct honor of serving over 100 institutional clients. This expansion not only reflects our commitment to excellence but also underscores the confidence you place in us.
Team Additions – At the core of our commitment to you is the team at Aristotle Pacific. We continue to invest in our existing team and have added talented professionals across the organization. In 2024, experienced professionals joined our legal, client service, finance, research and portfolio management departments. I would like to highlight two senior investment professionals who joined us during the fourth quarter:
- Ivor Schucking, a 32-year veteran in the industry, joined our team as a managing director and head of credit research. He will be leading the credit analyst team while also covering the financials sector. Prior to joining, Ivor spent over 14 years as a senior research analyst and global head of Financials Credit Research at Western Asset Management. Before Western Asset, Ivor spent over 12 years at PIMCO as a credit analyst and head of Global Credit Research and four years at Strong Capital Management as director of Credit Research. Ivor earned a bachelor’s degree from New York University and an MBA from New York University Stern School of Business.
- Jeff Klingelhofer, a 20-year veteran, joined the team as a managing director and portfolio manager. Jeff was added to the portfolio management team of our newly launched Credit Opportunities strategy. Jeff will also be working with the existing investment-grade and multi-sector investment team to further implement securitized investment ideas. Prior to joining, Jeff was co-head of investments at Thornburg Investment Management and a portfolio manager on all fixed-income strategies. Prior to Thornburg, Jeff was with PIMCO at its Newport Beach, Tokyo and London offices. He holds a bachelor’s degree from UC Irvine and an MBA from University of Chicago Booth School of Business.
We feel fortunate these talented, experienced and respected investment professionals have joined us. Additionally, with Ivor taking over as head of credit research, Bob Boyd, the firm’s prior head of credit research, will focus on portfolio management responsibilities across our floating-rate and CLO platforms.
Assets – As we enter 2025, our assets stand at just over $30 billion, a healthy increase from last year's opening at $24.5 billion. With fixed-income returns mixed in 2024, the growth was generally through new relationships and additional flows across multiple investment strategies. We continue to be humbled by the steadfast support from our clients and partners.
Investor Sentiment 180 – Entering 2024, the investor narrative was built on delayed 2023 expectations: aggressive Fed rate cuts, lower long-term rates, a slowing economy, and increased risk premiums. Once again, the economy and markets beat expectations—penalizing fear and underinvested capital. While the Fed did lower rates, longer-term rates went higher to the chagrin of most prognosticators, and risk premiums, including credit spreads, tightened. Entering 2025, investors expect rates to remain at current levels (with many predicting even higher long-term rates), economic optimism, and a continuation of the risk rally. In these changing currents, we have strengthened our hull and kept our sails agile as we navigate the evolving market opportunities.
Credit Opportunities – In reference to the previously mentioned Credit Opportunities strategy, we want to offer our focused, tested, and high-performing skillset in a less constrained, high-spread strategy. This is a multi-sector strategy focused on higher spread credit and securitized investments utilizing our unique perspective on relative value, experienced credit research, and active portfolio management capabilities. The portfolio was launched in December, and we expect this offering to be a compelling approach for many fixed-income allocators.
The Little Book of Credit – In July, we published the inaugural issue of “The Little Book of Credit,” a quarterly publication designed to demystify the world of credit. The reception has been overwhelmingly positive. We encourage you to explore “The Little Book of Credit” on our website and welcome feedback.
“Gratitude is not only the greatest of virtues, but the parent of all others.” —Cicero
Thank you for your support and confidence in Aristotle Pacific Capital. We are prepared for the opportunities and challenges 2025 has in store and welcome any questions.
Dominic Nolan, CFA
CEO
Aristotle Pacific Capital