Merian Global Investors, the asset management outfit that spun out of Old Mutual last year, has snapped up the Kestrel multi-asset team led by John Ricciardi in its first deal since its spin-out.
The acquisition will boost Merian's £26.4bn of funds under management with Kestrel's $151m (£123m).
John Ricciardi, the joint chief executive of Kestrel, who co-founded the business in 2011, will move to Merian along with his team of fund managers and analysts. He will report to Mark Gregory, Merian's chief executive.
For some time we’ve been looking to selectively expand our investment proposition, aligned with client demand for differentiated, high-alpha active strategies that offer genuine portfolio diversification"
"For some time we've been looking to selectively expand our investment proposition, aligned with client demand for differentiated, high-alpha active strategies that offer genuine portfolio diversification," said Gregory.
Subject to approval, the sale is expected to complete by the end of the year. Details of how much Merian paid for this business were not disclosed.
Ari Zaphiriou Zarifi, the chair of Kestrel, said Ricciardi had built "an excellent team" at the company, but "now is the right time for them to move to a larger platform", adding that this was "a great outcome for all parties".
According to Merian, the fund has delivered a compound annual return of 6.2% since its inception in April 2012 up to the end of September versus the 2.4% return in its Morningstar USD Flexible Allocation peer group.
Richard Buxton (pictured), one of the UK's best-known stockpickers, led the buyout, but stepped down as chief executive in January to concentrate on running his investment portfolio.