Merian Global agrees first acquisition since spinoff
Merian Global Investors has agreed to acquire Kestrel Investment Partners’ multi-asset business, in its first acquisition since its management buyout from Old Mutual in June last year.
The acquisition will boost Merian’s £26.4bn of funds under management with Kestrel’s $151m (£123m).
Read more: Investment firm responsible for £1bn assets goes into special administration
Kestrel’s entire multi-asset team will join Merian, including John Riccardi – the joint chief executive and co-founder of Kestrel. Riccardi will report to Merian chief executive Mark Gregory.
Merian has not disclosed the terms of the deal, which is expected to close in December pending regulatory approval.
“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.
“The Kestrel multi-asset team’s proven process is hugely compelling and I’m delighted that we’ve signed an agreement to secure its best-in-class business,” he added.
Riccardi said Merian was “an ideal home for our ambitious team”.
Kestrel chairman Ari Zaphirirou Zarifi called the deal “a great outcome for all parties”, and said Riccardi had “consistently delivered outstanding returns” at Kestrel.
Read more: UK fund outflows accelerate as cautious investors snub equities
“As well as a strong track record,” he continued, “John has also built an excellent team and now is the right time for them to move to a larger platform where they can capitalise on the success they have had at Kestrel.”
Merian was spun off from Old Mutual Global Investors last June in a management buyout supported by private equity firm TA Associates.