ORIGINATOR PROFILE
Turning Rock Partners
Turning Rock Partners is an originator of long-term investments in debt and equity securities of North American small and mid-capitalization businesses. The Turning Rock team is led by a highly pedigreed and experienced group of investment professionals who most recently held roles at Fortress Investment Group, which is a global alternative investment firm with over $70 billion of assets under management. Turning Rock seeks to exploit the void that has been created by the current regulatory environment as banks have stepped away from acquiring and lending against certain assets. For example, Turning Rock will focus on undervalued cash flowing and asset-backed debt investments. By seeking to acquire assets at attractive entry pricing, Turning Rock can provide investors with downside protection against the loss of return or principal. Turning Rock aims to generate returns with a relatively lower correlation to traditional assets by implementing a strategy that is built on decades of experience sourcing, underwriting and managing complex investments.
Deal Sourcing
Turning Rock Partners sources potential transactions through its proprietary networks developed over years of investing and managing multi-asset class portfolios. Deal sourcing channels include capital market relationships, hedge funds in need of asset dispositions, private equity or real asset managers that have reached a maturity wall, investors, intermediaries and other individuals with whom Turing Rock has worked with over decades.
Investment Diligence
Turning Rock Partners conducts its due diligence as part of a five component process that is not necessarily linear in nature. Turning Rock starts by engaging its resources on a handful of potential investments that meet its criteria for investment. Turning Rock then performs commercial, operational, financial and legal due diligence on promising investments to ascertain which to fund. The due diligence process is driven by a fact-based assessment of value and risk-adjusted return. The components of the due diligence process touch each member of the Turning Rock team and leverage their expertise.
Investment Committee
The Turning Rock Partners Investment Committee consists of the firm’s three principals. The role of the committee is to assure that assets are effectively managed. The committee is responsible for developing a macroeconomic overview and capital market assumptions, providing direction for the investment team, reviewing potential investments and assets managed by the portfolio. On a weekly basis, the committee and the full investment team meet to discuss any updates in macroeconomic conditions, results for specific investments, changes in any other risk factors and to review the status of all potential pipeline opportunities.
On an ad hoc basis, the committee meets to review any potential investment. After the investment team has performed sufficient due diligence to make an initial recommendation, a formal recommendation is prepared outlining the opportunity. A unanimous approval from the committee is required for the investment to move forward. If approved, additional diligence is performed, a full write-up is prepared and again a unanimous approval is required to close on the transaction.
Management
Maggie Arvedlund
FounderPrior to founding Turning Rock Partners, Ms. Arvedlund was a Managing Director at Fortress Investment Group where she spent over eight years. Fortress Investment Group is a global investment firm with over $70 billion in assets under management. While at Fortress, Ms. Arvedlund was responsible for over $500 million of private equity and direct investments for the Fortress Partners Fund. During her tenure at Fortress Partners Fund, Ms. Arvedlund served on the Investment Committee from 2010-2015 and allocated across the alternative landscape including hedged equity, private equity, real estate, distressed, and other hard assets. Prior to joining Fortress, Ms. Arvedlund worked at Hall Capital Partners where she held roles in the portfolio management and research divisions. Hall Capital Partners is a privately held registered investment advisory firm with $29 billion of assets under management. Prior to Hall Capital Partners, Ms. Arvedlund held a number of senior operating roles in several privately held businesses. Ms. Arvedlund received a BS with honors from Vanderbilt University in Economics and an MBA in Finance from NYU’s Stern School of Business. Ms. Arvedlund serves on several non-profit boards including Summer Search New York City and is a founding member of the NYU Stern Private Equity Advisory Board. She resides in New York with her husband and two sons.
David Markus
CFA & PartnerPrior to founding Turning Rock Partners, Mr. Markus was a Managing Director at Fortress Investment Group where he spent four years. While at Fortress, Mr. Markus was responsible for credit and event driven investment strategies for the Fortress Partners Fund. Prior to joining Fortress, Mr. Markus was part of the team that launched and ran Voras Capital, a multi-strategy investment manager based in New York with offices in Hong Kong and London. Prior to Voras, Mr. Markus was the co-portfolio manager at Boone Capital Management and Delaware Street Capital, multi-strategy credit hedge funds with several hundred million dollars in assets under management. Mr. Markus has also worked as a senior high-yield and distressed debt research analyst at Amroc Investments and Solomon Brothers and as an associate in the private equity placement group of TIAA-CREF. He received an MBA from the Wharton School, where he was on the Directors Honor List, and a BS in Economics from the University of Pennsylvania. Mr. Markus lives in New York with his wife and two children.
Saba Ahmad
Chief Operating and Financial OfficerPrior to joining Turning Rock, Ms. Ahmad spent over seven years at Fortress Investment Group as a Managing Director and Chief Operating Officer of the Fortress Partners Fund. Ms. Ahmad was responsible for the finance and operations of the Fund’s multi-asset class portfolio as well as business management oversight. Ms. Ahmad was Chair of the Valuation Committee and also sat on the Management Committee for Fortress Liquid Markets. Prior to joining Fortress, Ms. Ahmad spent three years in the operational due diligence group at UBP Asset Management. She began her career with PricewaterhouseCoopers in the Banking & Capital Markets audit group where her clients included investment banks, private equity funds, hedge funds and other global financial institutions. Ms. Ahmad graduated from Georgetown University’s McDonough School of Business with a dual degree in Accounting & Finance. Ms. Ahmad is a Certified Public Accountant.
2 Represents an net annualized return, using an internal rate of return (IRR) methodology, with respect to the matured investments shown in your Portfolio experience, utilizing the effective dates and amounts of subscriptions and distributions to and from the investments, net of management fees and all other expenses charged to the investments.[read more]