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Driehaus Capital Management Review

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Driehaus Capital Management LLC

Driehaus Capital Management, LLC is a portfolio management firm with more than $6 billion in assets under management (AUM). It serves a diverse group of clients including high-net-worth individuals, family offices and endowments. The firm's financial advisors utilize active equity and alternative investment strategies, among others. 

Driehaus Capital Management Background

Driehaus Capital Management has been operating as a registered investment advisor (RIA) since 1983. Today, it’s based in Chicago, Illinois, and is owned by its founder Richard H. Driehaus, along with related entities. 

The firm supports more than 100 total employees including more than 30 investment experts. Driehaus Capital Management also manages proprietary mutual funds

What Types of Clients Does Driehaus Capital Management Accept?

Driehaus Capital Management serves the following types of clients: 

  • Corporate pension plans and public plans
  • Endowments and foundations
  • Single and multi-family offices
  • Driehaus mutual funds
  • Affiliated pooled accounts, non-affiliated U.S. and non-U.S. registered and unregistered
  • pooled investment vehicles
  • High-net-worth individuals

Driehaus Capital Management Minimum Account Size

Minimum account sizes required by Driehaus Capital Management for portfolio advisory services vary, depending on factors such as asset classes and investment strategies involved. We provide more details below:

Separately Managed Accounts 

Strategies Minimum
U.S. Equity Strategies except the Life Sciences Strategy $1,000,000 
Life Sciences Strategy and all ex-U.S. Strategies $20,000,000


Driehaus Mutual Funds

Fund Minimum
Driehaus Micro Cap Growth Fund, Driehaus Small Cap Growth Fund Investor Class, Driehaus International Small Cap Growth Fund, Driehaus Emerging Markets Growth Fund – Investor Class, Driehaus Emerging Markets Small Cap Growth Fund, Driehaus Event Driven Fund and Driehaus Multi-Asset Growth Economies Fund $10,000
Driehaus Active Income Fund $25,000
Driehaus Small Cap Growth Fund – Institutional Class and Driehaus Emerging Markets Growth Fund – Institutional Class $500,000


The firm requires a minimum investment of $1 million under affiliated pooled accounts managed in its life sciences strategy for standard class investors. 

Those interested in Driehaus Emerging Markets Growth Strategy and Driehaus International Small Cap Growth Strategy collective investment trusts (CITs) generally would need a minimum investment of $1 million. 

Services Offered by Driehaus Capital Management

Driehaus Capital Management specializes in portfolio management services. It provides access to separately managed accounts, proprietary mutual funds, CITs, affiliated pooled accounts and model portfolio programs. 

Depending on factors like the client’s risk factor and investment goals, the firm may utilize the following investment strategies to meet those objectives:

  • Active equity
  • Multi-asset
  • Alternative investments

Driehaus Capital Management Investment Philosophy

Driehaus Capital Management employs several investment strategies. We describe these below along with the philosophy that drives each. 

Growth Equity: Based on the belief that markets tend to misprice stocks of firms undergoing positive growth inflections and these inefficiencies can follow predictable and thus exploitable patterns, this strategy aims for maximum capital appreciation during a full market cycle from three to five years. 

Value Equity: Based on the idea that dividend-paying firms with favorable blend of higher returns of equity, lower debt and lower valuations offer the potential for superior-risk adjusted returns, this strategy aims for superior risk-adjusted returns in a full market cycle lasting three to five years. 

Emerging Markets: Taking an approach similar to that of the equity-driven strategies, this strategy aims for superior risk-adjusted returns but allows exposure to other asset classes. 

Alternative Credit: Based on the view that strong returns with modest volatility can be captured in the credit markets by employing a combination of sophisticated hedging and arbitrage investment techniques, this strategy seeks volatility-managed absolute returns in varying interest rate environments. 

Alternative Event Driven: Driven by the notion that strong event-driven investments can be found in the global credit and equity markets, this strategy seeks superior risk-adjusted returns with lower correlations to major asset classes and lower volatility than the S&P 500 Index.

Fees Under Driehaus Capital Management

Fees required by Driehaus Capital Management vary, depending on factors such as account type as well as investment strategy and asset classes involved. We provide more details below: 

Separately Managed Accounts 

Strategy Fee
Micro Cap Growth Strategy Accounts  1.25% per annum
Small Cap Growth Strategy Accounts 0.60% per annum 
Small/Mid Cap Growth Strategy Accounts   0.60% per annum 
Small Cap Value Strategy Accounts 0.60% per annum 
Life Sciences Strategy Accounts 1.25% per annum plus an annual performance fee of 17.5%
International Small Cap Growth Strategy Accounts  1.00% per annum
Emerging Markets Growth Strategy Accounts 0.90% per annum  
Emerging Markets Small Cap Equity Strategy Accounts 1.00% per annum
Emerging Markets Multi-Asset Strategy Accounts 1.00% per annum 

Driehaus Mutual Funds 

Fund Fee
Driehaus Micro Cap Growth Fund 1.25% of average daily net assets  
Driehaus Small Cap Growth Fund 0.60% of average daily net assets
Driehaus International Small Cap Growth Fund 1.00% of average daily net assets
Driehaus Emerging Markets Growth Fund 1.05% of average daily net assets up to $1.5 billion and 0.75% of average daily net assets in excess of $1.5 billion
Driehaus Emerging Markets Small Cap Growth Fund  1.15% of average daily net assets
Driehaus Active Income Fund 0.55% of average daily net assets
Driehaus Event Driven Fund 1.00% of average daily net assets
Driehaus Multi-Asset Growth Economies Fund 1.00% of average daily net assets

Collective Investment Trusts

Strategy Fee
Driehaus Emerging Markets Growth strategy 0.90% per annum of the net asset value of the account
Driehaus International Small Cap Growth strategy 1.00% per annum of the net asset value of the account

Non-discretionary Model Account Programs 

Strategy  Fee
Driehaus Small Cap Value strategy 0.50% per annum of the net asset value of the model manager’s accounts invested in the Small Cap Value strategy

Additionally, Driehaus Capital Management offers access to affiliated pooled accounts to accredited investors. The firm currently offers one such account, its life sciences strategy, to these investors. The fee for this service is 1.25% of the account’s net asset value plus an annual incentive allocation of 17.5%. 

In some cases, Driehaus Capital Management may charge performance-based fees. In such scenarios, fees may rise if the investment performs well according to agreed upon terms. The firm would disclose information related to performance-based fees as it applies to the specific client involved. 

Note that the above fee schedules apply to the advisory fees charged by Driehaus Capital Management. These don’t cover other expenses your account may face. These additional charges may include brokerage costs, custodial fees and expenses related to the mutual funds you may be invested in. You can visit the official Driehaus Capital Management website to access relevant fund prospectuses that detail fund expenses. You should also review other service- and fee-related documents provided by Driehaus Capital Management. 

What to Watch Out For

Driehaus Capital Management has relationships with affiliated companies in the financial services industry and is also a registered broker-dealer. So it may receive compensation in some form from other firms in connection with the services it provides to its clients. That said, Driehaus Capital Management does not believe these arrangements raise conflicts of interest. Also, the firm has a fiduciary duty to provide advice in your best interests at all times or face severe penalties and possible legal action. 

In addition, the firm must disclose potential conflicts. 

Disclosures

As of the time of this writing, neither Driehaus Capital Management nor its managing persons have undergone any disciplinary or legal action in the past 10 years. You can find the latest details by accessing the firm’s disclosure documents available for free on the official website of the Securities and Exchange Commission (SEC). 

Opening an Account With Driehaus Capital Management

You can contact Driehaus Capital Management by visiting its website at https://www.driehaus.com/ or by calling the firm at (312) 587-3800. 

Where Is Driehaus Capital Management Located?

You can find Driehaus Capital Management at 25 East Erie Street Chicago, Illinois 60611. 

Tips on Finding the Right Financial Advisor 

  • Driehaus Capital Management does not focus on individuals outside the high-net-worth scope. We can help you find an advisor who does. Use our SmartAsset five-minute matching tool. It connects you with up to three financial advisors in your area, based on your current situation and goals. 
  • Before you choose an advisor, know that not all are held to the same standards. An RIA ,for instance, must follow specific federal rules or face severe charges. Certified financial planners (CFPs) must undergo rigorous testing and training before earning that prestigious designation. Both types are fiduciaries, which means they must always work in your best interests. You should pay attention to these and other financial services designations. 

All information was accurate as of the writing of this article.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research