The fully employee-owned firm has a solid core, with flagship strategies FPA Crescent and FPA New Income accounting for a significant portion of the firm’s USD 24 billion asset base as of December 2022. Although both strategies, particularly FPA Crescent, have struggled with outflows in recent years, the firm has taken considered steps to diversify its business and support flagging strategies elsewhere. The firm brought on outside managers to rejuvenate beleaguered FPA Capital in 2020, merging that vehicle with FPA Queens Road Small Cap Value after adopting it to the FPA platform. More recently in 2021, the firm partnered with WhiteHawk Capital Partners to raise funds for a private credit strategy and made FPA Crescent’s long-only equity portfolio available to a wider audience through the launch of the firm’s first exchange-traded fund, FPA Global Equity ETF.
Investor success remains a top priority for the firm. FPA showed careful capacity consideration when closing FPA New Income to new investors in 2020 and improved the investor experience by lowering fees upon the strategy’s mid-2022 reopening amid outflows. Although the firm’s equity could be more widely dispersed among its employee base, fund ownership remains high among its senior investors.