Diffractive Managers Group and ESG Leader Gitterman Wealth Management, LLC Announce Partnership
BOSTON–(BUSINESS WIRE)–Diffractive Managers Group, the asset management platform of 1251 Capital Group, today announced that it has entered into a partnership with Gitterman Wealth Management, LLC (GWM), a leader in climate and environmental investment solutions, social and governance (ESG) for financial advisors, individuals and institutional investors. Under the terms of the agreement, Diffractive will take a minority stake in GWM to help GAM grow the distribution of the SMART Investing Solutions suite, including the SMART Climate Unified Managed Account (UMA).
“The company is highly respected and known in particular for SMART investment solutions for financial advisors and their clients. These solutions include Climate UMA, one of UMA’s first client-focused solutions targeting climate change,” said John Hailer, President of Diffractive “We look forward to bringing the company’s active investing solutions to a wider audience and helping them create new sustainable investing products. Given the need for ESG investing strong, we are delighted to partner with and support its continued growth.”
Gitterman Asset Management is a pioneer in providing sustainable, active investment strategies and advisor education. He is particularly known for his thought leadership, illuminating key trends and best practices related to ESG and climate investing, including The Great Repricing: Financial Advice in the Age of Climate Change, the Gitterman ESG Playbook iSummit and the Gitterman Sustainable UMA iSummit on RIA Channel. Jeff Gitterman is also co-host of TheIMPACT TV, amplifying stories that demystify climate investing, ESG data and other sustainability topics.
Jeff Gitterman, co-founding partner of GWM, shared, “We believe climate change is our most critical systemic challenge. Besides being the biggest trend in the investment management industry, sustainable investing is also our highest goal. We are therefore committed to educating advisors, institutions and individual clients so that they can participate in this change and contribute to the targeted direction of capital.
The partnership provides GAM with access to new growth channels through Diffractive’s extensive product distribution platform and expertise. Under the agreement, the company will retain its independence and full control of the investment process and function, in line with Diffractive’s policy of empowering management teams to build sustainable businesses. “Working with the team over the past few months, we have found a common vision to look to the future of asset management and develop innovative ideas on how to impact client portfolios” , said Peter J. Martin, head of distribution at Diffractive. . “The GWM team also embodies what we want to do at Diffractive: keep our values close and do well by doing good.”
GWM Co-Founding Partner Eli S. Rauch added, “We are particularly proud of the widespread enthusiasm for our SMART Investing Solutions suite, which provides financial intermediaries with everything they need to market and deliver services that deliver additional layer of due diligence, respond to the growing trend of impact and ESG investing and generate competitive risk-adjusted returns.
“With this new partnership, GWM’s current minority partner, Merchant, will remain in place and fully supports its alignment with 1251,” said Merchant Managing Partner Tim Bello. “We spent some quality time getting to know 1251 and the Diffractive team. This is a special, talented group of people who we get along with really well, and they take a partnership approach that fits perfectly with the way Merchant does business. We look forward to our future together.
Diffractive’s partnership with the GWM expands the major asset managers in which it holds stakes, which also include Emerald Asset Management, Greenbacker Capital Management, Mar Vista Investment Partners, Wavelength Capital Management and Ziegler Capital Management. Its affiliate managers offer differentiated active strategies to investment professionals and their clients, including access to a range of impact-oriented alternative strategies and structures as well as traditional core portfolio solutions. Several of them, including Greenbacker Capital and Ziegler Capital, have strong sustainable investing offerings.
Terms of the investment partnership were not disclosed.
About the Diffractive Managers Group
Diffractive Managers Group is an asset management company and platform company of 1251 Capital Group. Our expertise lies in identifying unique and innovative investment strategies and uncovering partnership opportunities where centralized distribution can generate significant growth. 1251 Capital Group was created with permanent capital from a select group of wealthy investors. Prior to launching 1251 Capital, its senior executives spent a combined 55 years investing in the asset management industry at TA Associates and Natixis Global Asset Management. Within Diffractive Managers Group, we have endeavored to operate actively different from other financial partners in the asset management industry. For more information, visit www.diffractivemanagers.com.
About Gitterman Wealth Management
Gitterman Wealth Management, LLC (GWM) is an SEC registered investment adviser located in Edison, New Jersey. Its wealth management business was founded in 2010 by Jeff Gitterman and Eli Rauch to provide services to the higher education market and high net worth individuals. In 2015, the firm launched SMART (Sdurability Metric Aapplied to Rrisk Jtolerance)® Investing Solutions and in 2020 launched the Gitterman Asset Management brand to house its growing ESG strategies, thought leadership and practice management offerings for financial advisors and institutional markets. 2020 also saw the creation of the SMART Climate Unified Managed Account (UMA), reinforcing GWM’s commitment to addressing sustainability challenges and opportunities, particularly climate change mitigation and adaptation. As of December 2021, GWM manages and advises approximately $1.3 billion in client assets. For more information, visit https://investor.gittermanwealth.com/.