Schroders expands ABS and MBS offering through acquisition
Schroders has acquired the securitised investment management team of Brookfield Investment Management.
The transaction is set to be concluded in the third quarter of 2016. The financial terms of the deal have not been disclosed.
Led by Michelle Russell-Dowe, managing director and head of Securitised Products Investments at Brookfield, the team currently manages US$4bn (€3.5bn). It will now work with Schroders existing New York-based ABS team, taking the combined total assets under management to US$8bn (€7.06bn).
The team also manages an Irish qualifying investor alternative investment fund (QIAIF), which will become part of the firm’s extension into alternative investments.
These assets will now be managed under the Schroders brand, with full access to the firm’s asset management platform, economists, research and risk management capabilities.
Karl Dasher, chief executive, North America at Schroders said that he believed that the acquisition deepens the firm’s capabilities in “one of the largest and most research intensive credit sectors globally”.
“The process developed by Michelle and her team over two decades has delivered one of the longest and strongest track records in the sector with an extensive network of industry relationships,” he said.
“This will strengthen our investment capability for both US and non-US investors seeking higher return opportunities within fixed income.”
Russell-Dowe added: “We feel the organisation, investment approach and environment will be a great fit for our team and our clients.”