Impax Asset Management acquires Pax to expand its sustainable investment strategy
Aim-listed sustainable investment group Impax Asset Management has today announced it will acquire US firm Pax World Management, to create an investment manager with £10.3bn in assets under management.
London-headquartered Impax will initially pay $52.5m (£38.7m) for New Hampshire-based Pax, with another $37.5m due in 2021, subject to Pax’s performance.
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The philanthropic Shadek family, who were Pax’s largest shareholders, will receive $44.2m on the closing of the transaction and up to $31.3m in contingent payments.
“Like Impax, Pax has a long track record as a pioneer in sustainable investing and a strong team of highly experienced investment management and support staff,” said Ian Simm, founder and chief executive of Impax.
“The combined group will start with a closely aligned business culture and be well placed to offer a broader service and more diversified range of products to existing and future clients.”
The group has seen rising interest from asset owners for ploughing more money into sustainable investment opportunities.
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While Impax focuses on actively managed global public equity and private equity strategies, Pax brings knowledge of actively and passively managed equity and fixed income strategies.
The firms have collaborated in the past, designing and managing the Pax Global Environmental Markets Fund which had net assets of $511m as of 31 August 2017.
Both management and investment teams will remain in place following the deal, while Pax’s mutual funds will retain its brand name. Joe Keefe, Pax’s president and chief executive, will continue to lead Pax.
The deal follows a number of tie-ups in the investment manager space over recent months. Janus Henderson and Aberdeen Standard Life are two which have completed, while the potential merger of Smith & Williamson and Rathbones is still ongoing.
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