Guggenheim Partners Says Its CEO Not Planning to Step DownGuggenheim Partners Says Its CEO Not Planning to Step Down
At least one member of Guggenheim's board of directors has pressed Mark Walter to leave the firm after he became the subject of news coverage.
September 20, 2017
By Trevor Hunnicutt and Jennifer Ablan
NEW YORK, Sept 19 (Reuters) - Guggenheim Partners LLC saidon Tuesday that its chief executive officer, Mark Walter, has nocurrent plans to step down and is not being pushed out of theinvestment firm he helped found, denying reports to thecontrary.
A source told Reuters that at least one member ofGuggenheim's board of directors has pressed Walter to leave thefirm after he became the subject of news coverage.
Bloomberg News reported earlier Tuesday that Walter may stepaway from day-to-day management of Guggenheim, while The WallStreet Journal later reported that the billionaire has toldcolleagues he is considering stepping down as CEO.
"It's patently false," said Michael Sitrick, a spokesman forGuggenheim.
Scott Minerd, the global chief investment officer ofGuggenheim and a closely watched investor, has repeatedlysidestepped questions about Walter in numerous interviews withReuters in recent months.
Among questions he sidestepped was comment on a report thatfirst appeared in the Financial Times that there was a "powerstruggle" between Minerd and Walter. Both men previously deniedthat report.
In a recent interview, Minerd said his focus is to grow theasset-management company, which as of June 30 had $290 billionunder management.
"Our next stop is $500 billion," Minerd said last Friday."Years ago, we were asked about our risk management. Now, theyare saying 'Wow, you have consistent performance,'" Minerd saidof the factors driving cash into Guggenheim's mutual funds thisyear.
Guggenheim also faces scrutiny from the U.S. Securities andExchange Commission about an investment it made in aLondon-listed company focused on banking operations in Africa,according to a person familiar with the matter. Guggenheimdeclined to comment on that examination.
The company, Atlas Mara Ltd, was co-founded byformer Barclays Plc CEO Bob Diamond. Atlas Mara did notimmediately respond to an emailed request for comment afternormal business hours. The SEC declined to comment on itsactivities.
News stories have also questioned Walter's relationship withan employee, Alexandra Court, and her elevation to a roleoverseeing institutional distribution. Court is in the processof negotiating a possible exit from the company, according to aperson familiar with the matter.
Sitrick, the Guggenheim spokesman, on Tuesday said thatCourt and Walter "only have a business relationship," anddeclined to comment further.
Guggenheim is well known for big deals, including leading apurchase of the Los Angeles Dodgers baseball club in 2012, witha group that included basketball great Earvin "Magic" Johnson.
The firm has ties to one of the best-known surnames infinance, a dynasty that includes the founder of a 19th centurymining collosus as well as the philanthropist behind New York'sSolomon R. Guggenheim Museum.
Guggenheim Partners has been in talks for a deal to sell itsexchange-traded funds business to money manager Invesco Ltd, a person familiar with the matter told Reuters in earlyAugust.(Reporting by Jennifer Ablan and Trevor Hunnicutt; Editing byLeslie Adler)
