Swiss private bank group Vontobel has announced its global multi-boutique asset management division, Vontobel AM, will purchase a 60% stake in TwentyFour Asset Mangement.
The remaining 40% held by key employees and partners of TwentyFour AM will be acquired by Vontobel over the longer-term.
The transaction, which is conditional on the approval of the UK’s financial conduct authority and Switzerland’s Finma, is expected to close in Q2 2015.
Established in 2008, TwentyFour AM is an independent fixed income specialist based in London with £4.4bn (€5.97bn) in assets under management.
This acquisition will strenghten Vontobel’s presence in the UK market and extend its fixed income product offering.
The firm said Vontobel and TwentyFour will offer clients a broader range of specialised fixed income strategies, for which there is significant demand in the current environment of record low interest rates.
Together, they will manage CHF17bn (€16.19bn) of total fixed income assets under management. TwentyFour’s partners will continue to manage the boutique’s day-to-day operations, retaining full authority over fund investment decisions.
“To further strengthen alignment, the partners have agreed to reinvest a significant share of their consideration into existing TwentyFour or Vontobel investment funds. In line with Vontobel’s multi-boutique structure, both firms’ investment platforms will operate independently of each other to ensure a continuation of their strong performance record,” explained Vontobel.
Axel Schwarzer, head of Vontobel AM and member of the group executive management, commented: “TwentyFour’s expertise, performance culture and the consistent organic growth have convinced us. The acquisition will set a strong foundation for Vontobel Asset Management’s further growth in the UK, which is one of the most important asset management markets in the world and accelerates the international growth of our business. ”
Mark Holman, CEO of TwentyFour, said: “We are delighted to welcome Vontobel as a committed long-term partner to the firm. This represents a significant step in the evolution of TwentyFour, providing a one-off opportunity to achieve our goals and vision, without compromising on our boutique approach and culture. We will continue to focus on delivering strong investment performance to our clients.”
The transaction will be financed out of Vontobel’s own funds and is expected to be accretive for Vontobel in the first year with no significant integration costs.
The Zurich-headquartered firm will continue to exceed its own target capital ratio of 16% and still considers additional external growth opportunities.