Engaged Capital, LLC (Newport Beach)

Name: Engaged Capital, LLC
Address: 610 Newport Center Drive, Newport Beach, CA, 92660
Telephone: 949-734-7900

Engaged Capital, LLC is a large advisory firm based in Newport Beach. It manages $572.36 million of regulatory assets for 14 client accounts. It has been registered with the SEC as an adviser since 2012 and has operated in the jurisdiction of California.

Engaged Capital provides portfolio management for pooled investment vehicles and portfolio management for businesses and institutional clients. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

Engaged Capital: assets under management

The assets under management (AUM) of Engaged Capital, LLC is $572.36 million, all of which is managed in discretionary accounts. The firm's AUM has grown by 569% since the beginning of its operation, and $382.22 million of the total AUM is attributable to clients outside of the United States.

The firm manages $572.36 million in discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $40.88 million each.

Engaged Capital has custody of $547.23 million in cash and securities for 13 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in exchange traded securities the most. They account for 95% of the total AUM. The second-largest asset type is investment grade corporate bonds, which make up 5% of the firm’s portfolio.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Engaged Capital, LLC for their services and products based on a percentage of assets under management and performance-based fees. Compensation based on assets under management promotes a long-term relationship between a client and the adviser and helps align mutual interests. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Engaged Capital serves?

The firm provides services to pooled investment vehicles and corporations or other businesses. The largest group of clients of Engaged Capital is pooled investment vehicles with 13 clients and $547.23 million of assets under management. Among the 11 most similar advisory firms, Engaged Capital has the 4th highest percentage of pooled investment vehicles out of all clients.

The amount of regulatory assets under management is $572.36 million for 14 clients. 29% of the firm’s clients are foreign persons or businesses.

Engaged Capital also advises several private funds. Namely, ten hedge funds. The minimum investment commitment required of non-related persons is $1,000,000 for each fund.

Careers at Engaged Capital, LLC

The company employs 11 people that are either part- or full-time employees. 64 percent of the employees work as investment advisers or researchers. No employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm compensates employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Glenn William Welling has served as the Chief Investment Officer since 1 Feb 2012. David Earl Demarest joined the executive team most recently as the Member, Chief Financial Officer, Chief Operating Officer, Chief Compliance Officer.

Direct owners and executive officers

Name	Entity	Date acquired	Ownership	Employer ID
Jacob Prell Sonenshine	Trustee of sonenshine family trust	1 Apr 2000	Other	3100567
Allyson A Sonenshine	Trustee of sonenshine family trust	1 Apr 2000	Other	6052514
Glenn W Welling	Trustee of welling family trust	1 Oct 2000	Other	4577951
Lauri A. Welling	Trustee of welling family trust	1 Oct 2000	Other	6052515
Glenn William Welling	Chief investment officer	1 Feb 2012	Other	4577951
Jacob Prell Sonenshine	Manager, chief operating officer, chief compliance officer	1 Feb 2012	Other	3100567
Glenn W Welling	Manager, chief investment officer	1 Feb 2012	Other	4577951
Sonenshine Family Trust Dated 4/21/00	Member	1 Apr 2012	25% - 50%	xxx-xx-xxxx
Welling Family Trust Dated 10/31/00	Member	1 Apr 2012	25% - 50%	xxx-xx-xxxx
Llc Engaged Capital Holdings	Member	1 Aug 2012	75% - 100%	46-0776009
Llc Engaged Capital Holdings	Managing member	1 Oct 2012	50% - 75%	46-0776009
Christopher Bayer Hetrick	Member, director - research	1 Oct 2012	Other	3070360
Andrew Marc Bzura	Member, chief financial officer, chief operating officer, chief compliance officer	1 Oct 2012	Other	5061015
Brendan Blake Springstubb	Member, senior analyst	1 Jun 2013	Other	6318521
Richard Todd Gray	Member, chief client officer	1 Mar 2014	Other	2079924
David Earl Demarest	Member, chief financial officer, chief operating officer, chief compliance officer	1 Oct 2014	Other	1507858

Indirect Owners

The SEC currently registers 2 indirect owners.

Name	Entity	Date acquired	Ownership	Employer ID
Welling Family Trust Dated 10/31/00	Class a member	1 Aug 2012	75% - 100%	xxx-xx-xxxx
Glenn William Welling	Managing member	1 Oct 2012	50% - 75%	4577951

Based in Newport Beach

The principal office where Engaged Capital, LLC performs its advisory services is located at 610 Newport Center Drive, Newport Beach, CA 92660, which is also the mailing address of the firm. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 949-734-7900 or by fax 949-734-7901. The normal business hours are 8 am - 5 pm on Monday - Friday. You can find more information about the New York firm at engagedcapital.com.