MitonOptimal International, the Guernsey-headquartered fund management company, is set to acquire Coram Asset Management Ltd, in a surprise move, the company announced in a statement today.
The price MitonOptimal is to pay for Coram and other details of the transaction weren’t disclosed.
The acquisition of the Bath, England-based fund management company, co-founded just last year by the late Martin Gray, is subject to Financial Conduct Authority regulatory approval. It is set to reunite the Coram team with their former colleagues at MitonOptimal, in a relationship that dates back more than a decade.
The untimely death of Gray – a popular fund manager in industry circles – at the age 65 last month is understood to have led to the Coram team to re-evaluate the business’s future without its former leader at the helm.
Coram has been the manager of MitonOptimal’s Offshore Special Situations fund since December 2014 and prior to Coram’s formation, James Sullivan co-managed the fund, alongside Martin Gray, at Miton Group.
Gray had been chief executive of Miton from 1997 to 2014.
“Martin Gray’s influence at Coram Asset Management as a co-founder, fund manager and shareholder was significant and his passing marked an inflection point in our business model which led us to explore a number of options available to us,” said James Sullivan, Coram co-founder and fund manager (pictured above).
“We believe that this deal meets the long-term interests of the investors within the funds managed by Coram and we are delighted to be working with the MitonOptimal team again, cementing a relationship that goes back over 10 years.
“The company has close to half a billion pounds in assets under management and the balance sheet strength that allows Coram to implement its strategy at a pace that exceeds original expectations,” said Sullivan.
Scott Campbell, managing director and chief investment officer at MitonOptimal said the acquisition would benefit both companies and their clients.
‘Competent fund managers’
“Continuing with the long-term investment process for our client’s assets was paramount and James Sullivan and Mel Kennard have proven to be very competent fund managers and business operators respectively,” he said.
“We are excited at the prospect of their joining the MitonOptimal team as we continue to develop our discretionary fund management, advisory services and funds business on a global basis.’
MitonOptimal is a specialist global multi-asset management company, with a presence in Guernsey, South Africa, Singapore and the Isle of Man.
Founded in 2002, the business offers a range of multi-asset funds, alongside discretionary fund management and advisory services to intermediaries and institutional investors around the world.