Two well-known London-based asset management boutiques have announced a partnership as the integration dominates the industry.
Liontrust, which is listed on the FTSE 250, said on Tuesday that it had agreed to first acquire Majedie Asset Management for £ 80m and to obtain an additional postponement of up to £ 40m.
The transaction, which is scheduled to close in April next year, will increase Liontrust’s assets under management by £ 5.8bn to over £ 42.3bn, improving its position in the institutional market.
Historically, Liontrust was primarily a retail brand. We have grown our business through the acquisition, most recently in 2019 with Neptune Investment Management and last year with Architas’ UK investment business.
Majedie is a boutique equity manager previously identified as a potential acquisition target due to its small size and independence.
Many active managers lost the rise of passive funds and built a reputation as a strong equity picker last year when they took over the management of Edinburgh mutual funds.
John Ions, Chief Executive Officer of Liontrust, said in a statement: .. “
The transaction is how asset managers are merging and acquiring to scale, look for growth, and leverage new markets and distributions in an environment of lower fees and higher costs. Is shown.
Last week, Abbrdn £ 1.5bn transaction When the FTSE 100 Asset Manager turns to an army of fast-growing retail investors to rekindle growth, it buys Interactive Investor, the UK’s second-largest fund supermarket.
Numis analyst David McCann estimated that the price Liontrust pays to Majedie means a multiple of 4.1 to 4.5 times the management fee income. He added that this looks expensive compared to the multiples paid in historic Liontrust transactions, which are close to two to three times more common in the industry for equivalent businesses.
Majedie’s fund management team remains unchanged under the Chief Investment Officer. James de Uphaugh Continue to manage your current portfolio using the same investment process.
Rob Harris, Chief Executive Officer of Majedi, will join the Lion Trust as Head of Global Institutional Investor Business. Liontrust’s share price rose 1% to £ 22.90 on Tuesday morning.
Liontrust strikes deal to buy Majedie Asset Management Source link Liontrust strikes deal to buy Majedie Asset Management
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