Los Angeles money managers grapple with wildfire impact on operations

Los Angeles-based asset management firms are navigating operational disruptions caused by devastating wildfires, with some relocating offices and assisting staff who lost homes.

Major industry players in the area, including Capital Group, TCW Group, Oaktree Capital, and Ares Management, manage over $4 trillion of the $132 trillion in global assets held in the U.S.

People embrace as they evacuate following powerful winds fueling devastating wildfires in the Los Angeles area, at the Eaton Fire in Altadena, California, U.S. January 8, 2025. Reuters

The fires have decimated neighborhoods, leaving behind apocalyptic landscapes and destroying suburbs and affluent areas alike.

"A number of our team members have been displaced and several have lost their homes completely, my family included," said Katie Koch, president and CEO of TCW, which manages $203 billion in assets, in a LinkedIn post.

TCW confirmed all employees in Los Angeles are safe, though Koch’s home was lost. Koch declined to comment further.

Anacapa Advisors, managing $60.5 million in assets, recently moved to larger offices in Pacific Palisades, only to see the building destroyed by the Palisades Fire.

Founder Phil Pecsok assured clients that all employees are safe and the firm’s business continuity plan has been successfully activated. "We are working remotely with full access to trading platforms and risk monitoring systems," Pecsok said in a letter.

Jennifer McCullough from Marin County Search and Rescue inspects a burned property for hazards and remains during the Eaton fire in Altadena, California, U.S., January 11, 2025. Reuters

Pecsok is working from a second home after evacuating his primary residence.

Other firms are preparing for further risks as Santa Ana winds, which fuel the fires, are forecast to continue through Wednesday.

Oaktree Capital, managing more than $200 billion, remains operational in downtown Los Angeles. "Our data center is equipped with backup power and remains uninterrupted despite regional power outages," said Todd Molz, Oaktree's COO.

DoubleLine Capital, headquartered in Florida but with offices in Los Angeles, has employees working remotely due to poor air quality downtown.

Firefighters watch as the Palisades Fire, one of simultaneous blazes that have ripped across Los Angeles County, burns at the Mandeville Canyon, a neighborhood of Los Angeles, California, U.S. Reuters

The Milken Institute in Santa Monica and Dimensional Fund Advisors, with $800 billion in assets and offices in Santa Monica, have shifted to work-from-home setups.

The Milken Institute closed its office to prioritize employee safety, while DFA encouraged remote work wherever possible.

Bel Air Investment Advisors, which manages $10 billion in assets, has also transitioned to remote operations. "COVID set us up for managing through this and keeping our functionality intact," said partner Kevin Philip.

Firms further from the immediate danger, like Pimco in Newport Beach, remain unaffected. Pimco declined to comment.