London-based specialist fund manager Liontrust has brokered a deal to buy peer Majedie Asset Management for up to £120m.
The purchase price consists of initial consideration of £80m and additional deferred consideration of up to £40m.
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The deal, expected to close next April, will bolster Liontrust’s s existing institutional proposition and increase its assets under management (AuM) by £5.8bn to over £42.3bn.
It will also enable the company’s growth in key segments of the market through an expanded client base and distribution.
Liontrust CEO John Ions said: “Majedie is an important acquisition for Liontrust because of its strong presence and reputation in the institutional market.
“Given the growing demand from institutional investors for global equity managers, we believe we can expand this client base further for the Majedie investment team, as well as take advantage of Majedie’s institutional expertise.”
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By GlobalDataUnder the agreement, Majedie’s institutional fund management team will join Liontrust.
Upon completion of the deal, the team will be renamed the Liontrust Global Fundamental team. It will continue to be led by James Uphaugh.
Additionally, Majedie’s UK, US, Global and International equity funds will adopt Liontrust brand. Majedie CEO Rob Harris will become head of Global Institutional Business at Liontrust.
Commenting on the deal, Harris said: “Our strength in the institutional market, combined with Liontrust’s impressive sales and marketing capabilities, will enhance distribution for our investment team and offer a resilient, long-term proposition for our clients.
“Together, we will offer a fully resourced, best of breed fund management capability which is true to our heritage and ready to embrace the future with its myriad challenges and opportunities.”
Liontrust, which started off as a retail brand, expanded its business mainly through consolidation.
Last year, the firm purchased the UK investment business of Architas. It also bought Neptune Investment Management in 2019 and Alliance Trust Investments in 2017.
