Liontrust, the specialist fund management group, today announces that it has conditionally agreed to acquire the entire issued share capital of GAM Holding AG (GAM), a global investment management firm with GAM’s Investment Management division having AuMA of CHF 23.3 billion (£20.9 billion) as at 31 March 2023.
Highlights
- Creates a global asset manager with £53 billion in AuMA on a pro forma basis.
- Accelerates the development of Liontrust by meeting all seven of our strategic objectives.
- The Proposed Acquisition, before transaction and re-organization costs, is expected to be significantly earnings enhancing with regards to adjusted diluted earnings per share for the financial year ending 31 March 2025 (being the first full year post-completion) and in future years.
- The Consideration will be satisfied by the issue of 9.4 million new ordinary shares in Liontrust, and it is expected that GAM shareholders will own approximately 12.6% of the combined group on Completion; and
- The Proposed Acquisition is expected to complete in the 4th quarter of 2023.
Expands product
- Broadens Liontrust’s fund range and asset classes, including fixed income, thematic equities, and alternatives. This provides a platform for growth by providing enhanced client solutions globally and reduces the correlation of returns across the fund range through increased diversification;
- Twelve funds will have assets of more than £1 billion (seven managed by Liontrust and five by GAM) and both asset managers have a heritage of responsible investing;
Strengthens distribution
- Expands distribution globally, with 62% of GAM’s AuMA sourced from continental Europe while Liontrust is a leading asset manager in the UK with the 6th strongest brand (Source: Broadridge);
- Increases Liontrust’s physical presence in Europe, including a long history in Switzerland, and provides offices in Asia and the US and therefore a platform for expansion in those areas;
- Creates a broader client base for the combined group’s funds globally and benefits from the existing strong relationships with distributors of both asset managers;
Enhances investment talent
- Adds experienced investment teams, including nine fund managers rated A to AAA by Citywire;
- By AuM, 75% of GAM’s funds were in the 1st or 2nd quartile of their respective sectors over 3 and 5 years to 31 March 2023
- Liontrust will provide an attractive home for the active fund managers at GAM: they will benefit from Liontrust’s focus on independent, distinct processes; strong risk and compliance culture and framework; delivery across sales and marketing; a strong brand; financial stability; and the support provided by the business processes and infrastructure;
Fund management services
- GAM has reached an agreement in principle to transfer all third-party fund management services clients serviced out of Luxembourg and Switzerland to a specialist asset servicing company active across Europe, with further details to be announced by GAM in due course.
The Proposed Acquisition of GAM will accelerate Liontrust’s strategic progress and growth through the broader investment capability and global distribution of the enlarged company.
Liontrust will provide an environment to enable the investment teams to focus on managing their portfolios without distractions within a strong risk and compliance framework and with the support of the rest of the business to deliver performance and growth in assets.
“This is a significant acquisition that accelerates the growth of Liontrust through enhancing our distribution globally, product capability and investment talent Liontrust and GAM are both client centric businesses that thrive on providing solutions and first-class service. The enlarged company will provide the platform from which to deliver this to a broader client base. We have been impressed by the quality of the investment teams at GAM. There is commonality in that Liontrust and GAM are both committed to independent and distinct processes for each of their investment teams. Liontrust specialises in providing an environment in which investment teams can thrive, including through the excellence of our sales and marketing and a robust business infrastructure, strong risk and compliance culture, and the stability that comes with financial strength”.
John Ions, Chief Executive of Liontrust.
