GRAND RAPIDS — An employee group has taken a majority ownership position in investment advisory firm Red Cedar Investment Management.
Under the terms of the deal, Delta Dental of Michigan subsidiary The 4100 Group Inc. issued 51 percent of its common shares to Bridge & Vine LLC, a Michigan company owned by a core group of six Red Cedar Investment professionals. The 4100 Group retained a 49 percent equity stake in Red Cedar.
John Cassady was named CEO of the new ownership structure that took effect Oct. 1. He also remains chief investment officer at Red Cedar, which employs 13 people and has $1.4 billion in assets under management.
“This is a very exciting day for our organization and offers a clear example of the shared vision and strong partnership we have with The 4100 Group,” Cassady said in a news release. “This structure signals a commitment to our employees and our clients while providing a foundation to attract and retain talented investment professionals.”
Former Red Cedar CEO Michael Gilmore, who’s now manager for The 4100 Group, was named a board member.
Based in Lansing, The 4100 Group is a joint venture between Delta Dental of Michigan and Delta Dental of Ohio. The two formed The 4100 Group to promote innovation and diversify Delta Dental’s business into complementary industries.
“The 4100 Group is focused on pursuing new strategic growth opportunities to help diversify our core dental insurance business operations,” Gilmore said. “The success of Red Cedar as a high-performance asset management firm is a key part of our strategic plan and this structure increases our collective focus on growth.”