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Posted on Thu, Apr 15, 2010 : 5:30 a.m.

Ann Arbor's wealthiest investors are demanding liquidity, Telemus Capital Partners CEO says

By Nathan Bomey

The Ann Arbor region’s wealthiest investors are placing a premium on conservative investments and liquidity, a top local investment manager said.

Jim Robinson, CEO of Southfield-based investment advisory firm Telemus Capital Partners, which has an Ann Arbor operation, said the firm’s wealthy clients are taking a decidedly cautious approach with their capital.

Fear of the market’s volatility and other unstable investments like real estate is causing restraint among investors, regardless of their net worth. 

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Telemus Capital Partners CEO Jim Robinson

The typical Telemus client in Ann Arbor has between $1 million and $10 million in investable assets. Those “full-asset allocation” clients are afraid of locking up their capital in risky, long-term investments, Robinson said.

But that theme extends to all investors, he said.

“They’re really looking to make sure they can get liquidity when they need liquidity,” he said.

Telemus entered the Ann Arbor market in 2006 when it acquired Beacon Investment Co. The company maintained Beacon's local presence with about 15 employees based at its office on Miller Avenue. Telemus, which has 60 employees overall, manages about $2.5 billion in capital, of which Beacon clients represent about $550 million.

Robinson shared thoughts on several other issues:

On a commercial real estate market collapse many experts believe is imminent: “It’s been the worst kept secret on Wall Street. Everyone knows it’s coming. We think it’s going to come. I’d be most sensitive to shopping malls, strip malls and things of that nature. The consumer still represents 70 percent of the economy. If he’s not employed, he’s probably not shopping.”

On Telemus’ discontinued plans to expand to 7 to 10 markets throughout the country: “At some point we might be interested in that. But we’re really focusing on Michigan (and our) office down in Texas. Our plan right now is to refocus on Michigan and make sure we dominate our back yard.”

On pressure from investors to produce high returns: “You ask most individual investors, ‘How much risk are you comfortable taking?’ They can’t answer that. They want a 20 percent return with no risk. Part of our job is to explain you can’t get that but to explain what you can get for them.”

On the opportunity for private equity players to regain strength: “The businesses that have to sell in this environment have to sell - and that creates an opportunity for the investor.”

On Michigan’s economic recovery prospects: “It took us a long time to get into this situation, it’s going to take a long time to get out. We still have a highly trained workforce for companies that want to invest in this community. We are starting to see more companies want to invest in this community. That takes time. They’re not all going to suddenly show up.”

Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com or follow him on Twitter. You can also subscribe to AnnArbor.com Business Review's weekly e-newsletter or the breaking business news e-newsletter.