French financial services group Oddo & Cie has acquired German institutional asset manager Meriten Investment Management.
Oddo AM, the asset management arm of the French mid cap broker Oddo & Cie, has taken on a new dimension by purchasing Germany boutique Meriten Investment Management from BNY Mellon.
Although no value to the deal has been disclosed, it will bring an additional €24.8bn in AUM to the new Franco-
German business, giving it a total AUM of some €40bn – subject to regulatory approval by German financial
supervisory authority BaFin.
Oddo AM will be renamed Oddo Meriten AM. French assets will account for 37% of those €40bn, while German
assets will account for some 55% of combined AUM. The remaining 8% will come from other countries.
According to Oddo AM estimates, Oddo Meriten AM will become the third biggest independent player in the eurozone behind Edmond de Rothschild AM and Carmignac.
“The ambition for Oddo Meriten AM is to become a leading investment manager specialising in European financial markets and covering all main asset classes. The new group will offer its clients a broader range of investment solutions,” Oddo and Meriten said in a joint statement.
Düsseldorf based Meriten IM has expertise in European fixed income, multi-asset and quantitative investment strategies. Paris headquartered Oddo AM specialises in European equities, convertible bonds and multi-asset products.
Nicolas Chaput (pictured), CEO of Oddo AM and member of the executive committee at Oddo & Cie, says: “The cultural and strategic fit of Oddo AM and Meriten IM, our complementarities in investment strategies and distribution capability, will provide the company with new reach, enabling us to provide our clients with top-notch investment solutions over the long run.”
The breakdown of assets by investment strategy of the future entity reveals that 45% of them will be invested in
fixed income. The merger will also shift the balance of Oddo AM’s clients.
Currently, the French manager’s customer base is some 45% institutional investors, 32% external distribution (private banks, networks, multi-management) and 23% independent financial advisors.
Chaput declares: “Meriten being well known as a major actor in the institutional asset management industry in
Germany, its acquisition will increase significantly Oddo’s institutional clientele.”
The subsequent breakdown of assets by client type of Oddo Meriten AM will therefore be 76% institutional and
Segregated accounts are expected to account for some 71% of products managed by the future entity, and 29% mutual funds.
With this acquisition, Oddo & Cie roots itself deeper in Germany following the acquisition of Frankfurt based
investment bank Seydler in early 2015.
Meriten, which currently employs 180 workers including 40 portfolio managers and analysts, has been renamed several times in its history.
At its foundation in 1969, the company was called RWK before becoming West KA then West LB. In early 2006, WestLB Mellon Asset Management was formed as a 50:50 joint venture between BNY Mellon and Portigon AG.
In 2012, when BNY Mellon acquired the boutique outright, it became Meriten Investment Management.
Mitchell Harris, president of BNY Mellon Investment Management, says: “We have a high regard for Oddo who has impressed us with their commitment to Meriten’s continued success.”