Liontrust proposes to acquire Architas UK Investment Business for £75 million

The Architas UK Investment Business proposition has a well-established position among financial advisers, with net inflows (in 2019 and year to date), and will benefit from the power and engagement of Liontrust’s brand.

LONDON: Liontrust Asset Management, the specialist independent fund management group, has entered into a conditional sale and purchase agreement with Architas Limited to purchase entire issued share capital of Architas Multi-Manager Limited (AMML) and Architas Advisory Services Limited (AASL), together, the Architas UK Investment Business for a total consideration of up to £75 million.

The proposed acquisition includes the highly rated UK multi-manager fund management team at Architas  headed by Sheldon Macdonald, which on completion of the proposed acquisition will merge with Liontrust’s Multi-Asset investment team headed by John Husselbee.

Sheldon Macdonald will become Deputy Head of Multi-Asset. The Architas UK Fund Management Team has vast experience of, and a long-term pedigree in, multi-manager fund management.

Highlights of the Proposed Acquisition include:

  • The acquisition will create a significant multi-asset multi-manager proposition in the UK by product range and AuMA at £6.6 billion;
  • The Architas UK Investment Business proposition has a well-established position among financial advisers, with net inflows (in 2019 and year to date), and will benefit from the power and engagement of Liontrust’s brand;
  • The enlarged multi-asset proposition will have a broad range of both target risk portfolios and multiple ranges of risk profiled and non-risk profiled UK authorised funds;
  • The acquisition will enable us to broaden our distribution and client base among UK financial advisers who use investment solutions;
  • The enlarged resources will enhance Liontrust’s client service;
  • The Architas UK Fund Management Team consisting of Sheldon Macdonald, Mayank Markanday, Shayan Ratnasingam, Nathan Sweeny and Jen Causton will join the Company and merge with the Liontrust Multi-Asset investment team, with Sheldon Macdonald becoming Deputy Head of Multi-Asset and reporting to John Husselbee. There will be no change to the risk/reward objectives of the Funds and IAS nor target risk investment methodology for the risk profiled funds;
  • This will create one of the most experienced and highly regarded multi-asset multi-manager investment teams in the UK market;
  • Liontrust’s assets under management and advice (“AuMA”) will increase by £5.6 billion to £25 billion2;
  • The Liontrust brand will be used for all the UK Architas funds; and
  • The Proposed Acquisition, before transaction and re-organisation costs, is expected to be broadly neutral with regards to our adjusted diluted earnings per share for the financial year ending 31 March 2021 and earnings enhancing in future years.

John Ions, Chief Executive of Liontrust, said: “The Architas UK Investment Business is an important strategic acquisition for us to meet the growing demand for investment solutions from advisers and their clients over the next few years. It builds on and complements our existing investment solutions of multi-asset portfolios, Sustainable Managed and equity income funds.

“Buying the Architas UK Investment Business will expand our distribution among financial advisers through the scale of the combined businesses, the strength of the merged investment team, the broad range of multi-asset multi-manager portfolios and funds and enhanced client service.

“Financial advisers are key clients for Liontrust because of the responsibility they have as guardians of people’s savings. By offering both risk profiled funds and target risk portfolios, we will help advisers to meet their suitability requirements by being able to choose the solution that best meets their clients’ individual needs for investment and risk.

“Combining the teams led by John Husselbee and Sheldon Macdonald will give us significant capability in multi-asset multi-manager investments.

“The enlarged proposition will also enhance our client service to our existing and new client base. A key attraction of the acquisition is the ability to strengthen the digital tools we can provide to support and service financial advisers and their clients.

“The quality of the investment teams, the broad range of funds and portfolios, Liontrust’s sales and marketing capability, and the power of our brand give me great confidence we will grow the multi-asset multi-manager portfolios and funds over the next few years.”

Matthieu André, Chief Executive Officer of Architas Limited, said: “We are confident that Liontrust, given their deep commitment to clients and their UK focus, is a great strategic and cultural fit for our UK investment business. Liontrust already occupies an excellent position in the UK with strong links to financial advisers, which the acquisition of our UK investment business will help to strengthen.

“We would like to thank all our clients who have been with Architas since our launch in the UK over 10 years ago.  Their trust has allowed us to establish a strong business in the UK and we will be doing everything we can do ensure a smooth transition to Liontrust.”

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *