Macquarie Investment Management, part of Macquarie Group, has completed the acquisition of Luxembourg-based equity value boutique ValueInvest Asset Management. The firm managed €3.7bn in assets at 31 March 2018.
ValueInvest, established in 1998, brings a team of 17 experienced professionals to Macquarie, whose multi-boutique equity teams manage more than €69.7bn.
Stephen Haswell, head of Distribution, Macquarie Investment Management EMEA, has discussed the deal and the after-deal with InvestmentEurope.
What does the acquisition of ValueInvest mean for Macquarie Group?
Most of all, this strategic acquisition is about people and capabilities. We’re acquiring a talented group of investment professionals focused on providing high-conviction strategies in global equities. It has been near the top of our list to add global equities to our established capabilities and ValueInvest provides just that. The business is a natural complement and the team is a strong fit with our multi-boutique investment approach. ValueInvest provides a unique focused investment process to drive real value for the end-investor and can benefit from Macquarie Investment Management’s scale and breadth, including access to an increased global distribution capability.
What will the new structure be? Will there be any departures/hires at ValueInvest following the completion of the deal?
ValueInvest will join Macquarie’s multi-boutique equity structure led by John Leonard, global head of Equities for Macquarie Investment Management. Our message to ValueInvest’s existing clients is that nothing will change, and money will continue to be managed in the same way. We’ll collectively benefit from a stable team led by Jesper Alsing and chief investment officer, Jens Hansen. The ValueInvest team, with our support, will continue to deliver the investment philosophy they’ve become known for in the last fifteen years – one that maintains a focus on absolute risk and return through fundamental bottom-up stock picking, exploiting periodic, inefficient valuations of individual sectors and specific companies.
Are you looking at eventually streamlining fund ranges to avoid overlaps on ValueInvest and Macquarie’s fund ranges?
Our primary interest is to allow ValueInvest to continue doing what it does best. ValueInvest’s global equities composite has returned over 10% p.a. annualised performance since 1999, representing over 500bps of alpha versus the MSCI World Index. Following closing, we’ll work with the ValueInvest team to identify opportunities that can benefit ValueInvest’s clients. We have an existing presence in Luxembourg through our SICAV platform which is an important part of strengthening our European offering.
Is Macquarie looking to acquire any other boutiques?
We have always said that one of core long-term strategic pillars is to selectively add investment talent to our business. We believe that our platform is supportive for boutique businesses like ValueInvest, who can benefit from a global investment manager of our size with the distribution and support capabilities that come with it – this is at the same time as allowing ValueInvest to continue to enjoy autonomy in their investment decisions. A high-conviction, value-oriented investment approach is a key strength we identified in ValueInvest and that is not going to change.
What are MIM’s expansion plans in Europe?
We regularly review opportunities to add a third leg to the stool alongside our existing Australasian and US asset management operations. We’re excited to have an increased presence in Europe following the ValueInvest acquisition and see great opportunity in serving our European clients globally, and our global clients in Europe. Luxembourg will continue to play an increasingly important role in the European asset management sector given its growing presence in the Ucits market.