Team Lift-outs

A Team Lift-out is when a high-functioning team moves as an intact unit from their current employer to another firm.  It is distinct from a Team Build-out where, typically, the Team Leader is hired and then a team is built around them through additional hiring.
Team lift-outs can provide an alternative to Acquisitions, particularly in areas where there is a scarcity of acquisition targets (for example, in the Institutional Fixed Income space).  They enable a quick ramp-up in talent, and a ‘plug and play’ build-out of product line, without the logistical and cultural stresses of an acquisition.  They also allow a speedier and less risky route to market than creating teams from scratch.
In addition to bringing proven capabilities, teams can sometimes bring client relationships and assets.  While the portability of assets is always an unknown, it is our experience that there is a higher demand for teams that can bring assets with them than for teams that bring only a capability but without assets.
Teams will typically consider a move to a new organisation to access better distribution capabilities, or achieve greater autonomy, or better economics.
Team Lift-outs are legally complex.  Although legal contracts vary in different regions and countries, most senior employees will have restrictive covenants regarding non-competition and non-solicitation.   These need to be handled with meticulous care and due process so as to avoid any legal fallout.
Godliman works in close cooperation with one of the UK’s leading Employment Lawyers to ensure that legal process is duly adhered to.  Our partner firm, Attacca, works closely with US Employment Counsel to ensure the same.
Godliman invests considerable resources in identifying and assessing top performing investment teams, and maintaining an ongoing dialogue with the team leaders.  This allows us to engage with top talent in high demand product areas as it becomes available.

 

  • To learn more about Team Lift-outs, please proceed to Team Lift-Outs: Considerations;
  • If you are a Team leader and contemplating a move, please contact Rupert Reed to discuss how Godliman can guide you through a successful lift-out.