The Billions Behind the Buildout: How Asset Managers Fuel Smart Cities

AUSTIN, TX – December 09, 2025 – In the world of finance, a firm nearly doubling its assets under management (AUM) in under three years is a significant event. For Austin-based Sage Advisory Services, surpassing the $30 billion mark after closing 2022 with $17.5 billion is a testament to a powerful growth strategy. But beyond the impressive numbers lies a more profound story for our connected future: the quiet but immense influence of specialized investment firms in financing the very infrastructure that will power the next wave of mobility and smart city innovation.

While headlines often focus on the tech giants and automotive innovators, the capital required for sprawling 5G networks, resilient smart grids, and sustainable transport systems must originate somewhere. Increasingly, that origin point is a sophisticated asset manager like Sage, which has carved out a leadership position in the fixed income market—the bedrock of long-term infrastructure funding.

The New Architects of Infrastructure

The engine of urban transformation runs on capital. Historically, municipal bonds were the primary vehicle for funding public works. Today, the landscape is far more complex and dynamic. The global fixed income market, projected to swell from $70 trillion to over $113 trillion by 2029, is seeing a surge in demand driven by an aging population seeking stable returns and institutional investors navigating economic volatility.

Within this expanding market, a powerful sub-trend is emerging: the explosive growth of ESG-linked bonds and green fixed income assets. Investors are no longer just seeking returns; they are demanding that their capital contributes to a sustainable future. This shift aligns perfectly with the massive capital expenditures required for smart infrastructure. Firms that can expertly navigate this intersection of finance and sustainability are becoming the new architects of our urban environments.

Sage's trajectory exemplifies this trend. Specializing in fixed income solutions, including responsible investing and liability-driven investments (LDI), the firm is strategically positioned to channel institutional capital into the long-duration assets that define smart city projects. Their growth isn't just a reflection of market tailwinds but a deliberate cultivation of expertise in an area critical to national progress.

A Blueprint for Growth: Tech, Talent, and Trust

Sage’s leap from $17.5 billion to over $30 billion in AUM is no accident. It’s the result of what the firm calls a “relentless focus on delivering value.” This has been achieved through a dual-pronged strategy of heavy investment in both technology and talent. As President & CEO Bob Smith noted, this expansion is “a testament to the strength of our investment philosophy and the trust our clients place in us.” He affirmed the firm’s commitment to “continue to invest in people and technology to sustain this momentum.”

On the talent front, the recent appointment of Brad Jacob as Senior Vice President of Consultant Relations & Business Development underscores a focus on strengthening the human connections that underpin institutional finance. In this world, consultants are key gatekeepers, advising pension funds, endowments, and other large asset owners on where to allocate their billions. Michael Walton, Managing Partner at Sage, highlighted the strategic nature of the hire, stating that “Brad Jacob brings the experience and relationships that will help us strengthen consultant partnerships and broaden our institutional reach.” This move signals a clear intent to deepen the firm’s penetration into the institutional ecosystem that funds large-scale projects.

Simultaneously, the firm’s investment in technology and systems is crucial for navigating the complexities of modern fixed income markets. While specific platforms are proprietary, the emphasis on “research-driven solutions” implies a sophisticated data analytics and portfolio optimization capability. This technological backbone allows the firm to identify value, manage risk, and construct the transparent, robust portfolios that institutional clients demand, particularly for complex assets like green bonds and other sustainable debt instruments.

Responsible Investing as a Cornerstone

Perhaps the most critical element of Sage's success—and its relevance to the future of mobility—is its deep-rooted commitment to responsible investing. This isn't a recent addition to their marketing but a foundational part of their philosophy, developed long before ESG became a ubiquitous acronym. This long-standing expertise provides a crucial layer of trust and credibility for clients who need to ensure their investments are not only financially sound but also aligned with sustainability mandates.

This focus has not gone unnoticed. The firm has consistently earned accolades, including being named “Captive International 2024 Asset Management Firm of the Year” for a third consecutive year. Such awards, alongside being a finalist for “Fixed Income Manager of the Year,” validate its leadership in specialized sectors. This recognition is vital as it builds confidence among the institutional investors who rely on firms like Sage to vet and manage investments in projects that promise a cleaner, more connected world.

By building a culture that prioritizes transparency and client-first service, Sage has created a flywheel effect. Its demonstrable success and strong reputation attract more assets, which in turn allows it to play an even larger role in financing the next generation of infrastructure. The firm's ability to win awards like the “Best Places to Work” in Austin also suggests a healthy internal culture, which is often a leading indicator of sustainable external performance and high-quality client service. As the demand for green and sustainable infrastructure continues to accelerate, the expertise of specialized managers in evaluating and integrating these assets into large-scale portfolios will only become more valuable.