Liontrust Asset Management gobbles up Alliance Trust Investments
Specialist independent fund management group Liontrust Asset Management announced on Thursday that it has entered into a conditional share purchase agreement with Alliance Trust to purchase the entire issued share capital of Alliance Trust Investments for a total consideration of up to £30m.
The London-listed company said the proposed acquisition included the fund management team at ATI headed by Peter Michaelis, which it said has vast experience of and a long-term pedigree in sustainable investment.
On completion of the proposed acquisition, the ATI Investment Team will continue to manage the sub-funds of the Alliance Trust Sustainable Future ICVC, the sub-fund of the Alliance Trust Investment Funds ICVC, the SF Pan-European Equity, and one institutional segregated account.
The acquisition of ATI is expected to increase Liontrust's assets under management by approximately £2.3bn to more than £8bn, its board confirmed.
“This is a highly complementary acquisition that enhances Liontrust's fund management capability and remains true to the company's ethos of developing highly skilled teams with excellent investment processes to satisfy client demand,” Liontrust’s board said in a statement.
“ATI provides Liontrust with a distinct approach to investing in equities and fixed income and an experienced and highly respected fund management team.”
The board pointed out that over five years, ATI's nine equity and fixed income funds were in the first or second quartile of their respective sectors.
“The acquisition broadens distribution opportunities and will expand Liontrust's client base further in both the UK and internationally by adding a team focused on sustainable investment through active management.”
The Consideration will be satisfied by £17m of new ordinary shares of 1p each in the capital of the company, up to £3m in cash, dependent on the future level of assets under management managed by the ATI investment team, and up to £10m for the net asset value of ATI.