Los Angeles has emerged as a global hub for business and finance over the past few decades. As a result, many top investment companies and asset management firms have established offices in LA. Investment companies help individuals and institutions manage their capital through various investment products and strategies. This article explores some of the most prominent investment firms based in Los Angeles.
There are several factors that make LA an attractive location for major investment companies. Firstly, its large economy and business ecosystem provide ample investment opportunities across sectors like technology, real estate, healthcare and entertainment. Secondly, its cosmopolitan demographics ensure access to top talent and clients. Proximity to major Asian financial hubs is another plus.
Leading asset managers like Capital Group, Oaktree Capital and TCW Group have long had a strong presence in LA. In recent years, major private equity firms like Carlyle Group, Blackstone and KKR have also expanded into the region. LA is now home to investment firms managing over $2 trillion in assets globally.
Capital Group leads in assets under management from LA
Capital Group, founded in 1931 in LA, is one of the oldest and largest investment managers based in the city. It is best known for its American Funds family of mutual funds and manages over $2 trillion in equities and fixed income globally. The company has remained privately held under the Lovelace family’s ownership. Capital Group runs a highly decentralized investment research process utilizing multiple analysts and portfolio managers for each fund. Its consistent long-term performance has made Capital Groups one of the most trusted active managers worldwide.
Oaktree Capital specializes in alternative assets
Oaktree Capital, co-founded in 1995 by Howard Marks in LA, pioneered the public equity markets for alternative asset managers. It specializes in less efficient markets like distressed debt, private equity, real estate and infrastructure. Oaktree went public in 2012 but continues to be majority owned by its founders and employees. It manages $160 billion currently with a value-oriented, risk-controlled approach. Oaktree has one of the largest distressed debt portfolios globally. Its flexible capital base allows it to respond quickly to market dislocations.
TCW leads in fixed income and alternatives
LA-headquartered TCW Group has $230 billion in assets under management, making it one of the largest investment managers on the West Coast. Founded in 1971, it offers a diverse range of strategies including US and emerging market equities, investment grade and high yield fixed income, alternatives and multi-asset solutions. TCW has been rated a top performer especially in US fixed income investing. With over 500 investment professionals, it caters to a global institutional clientele including pension funds, financial institutions, endowments and family offices.
Major private equity giants open LA offices
Some of the world’s largest private equity groups have established offices in LA in recent years to tap into dealmaking opportunities on the West Coast. Blackstone, the biggest alternative asset manager globally with over $230 billion in private equity, entered LA in 2013. It has over 100 private equity professionals locally covering sectors like technology, healthcare and real estate. Similarly, Carlyle Group set up its LA office in 2007 to source deals in aerospace, software and digital media. KKR expanded into LA in 2004 and today has over 60 investment professionals locally.
Los Angeles has emerged as a magnet for top investment firms given its vast business ecosystem and strategic location. As home to some of the biggest names in traditional and alternative asset management, it offers institutional and individual investors access to a highly diversified range of investment strategies and solutions.