LONDON, UK: Liontrust Asset Management has entered into a conditional sale and purchase agreement to acquire the entire issued share capital of Majedie Asset Management Limited for a total consideration of up to £120 million.
Majedie is a well-established, UK-based asset management firm with a long-term pedigree in Institutional fund management, an area of increasing strategic focus for Liontrust.
Majedie’s assets under management and advice (AuMA) as at 30 November 2021 were £5.8 billion. Rob Harris, Chief Executive Officer of Majedie, will join Liontrust as Head of Global Institutional Business.
The proposed acquisition brings to Liontrust the highly rated and experienced Institutional fund management team at Majedie headed by James de Uphaugh.
On completion of the Proposed Acquisition (“Completion”), all of the investment team members will join Liontrust as the Global Fundamental Team and James de Uphaugh will become Head of the Liontrust Global Fundamental Team.
The consideration will be satisfied by the issue of up to £97 million in new ordinary shares of 1 pence each in the capital of the Liontrust Asset Management and up to £23 million in cash to the shareholders of Majedie.
John Ions, Chief Executive of Liontrust, said: “Majedie is an important acquisition for Liontrust because of its strong presence and reputation in the institutional market. Liontrust has been increasing our number of institutional clients and the purchase of Majedie will hasten this expansion by enhancing our investment capability and client service credentials.
“We have been very impressed by the Majedie investment management team. They are an experienced team with a robust investment process that is reflected in their excellent long-term performance. This is demonstrated by the quality of Majedie’s institutional mandates and the fact they were appointed by The Edinburgh Investment Trust in 2020.
“Majedie has strong client relationships that have been built up over many years and an impressive quality of client service that will reinforce our own.
“Given the growing demand from institutional investors for global equity managers, we believe we can expand this client base further for the Majedie investment team, as well as take advantage of Majedie’s institutional expertise.
“The quality of the Majedie investment team, their strong client relationships and service combined with Liontrust’s sales, marketing, brand and communications gives me great confidence we will grow the institutional business and Majedie’s funds over the next few years.”
Rob Harris, Chief Executive Officer of Majedie, said: “This is an exciting day for everyone at Majedie and for our clients. We have worked hard to build an enviable performance track record spanning almost 20 years, and the acquisition by Liontrust provides a compelling strategic and cultural fit, with a deeply ingrained focus by both firms on rigorous investment processes, a commitment to responsible capitalism and first-class client service.
“Our strength in the institutional market, combined with Liontrust’s impressive sales and marketing capabilities, will enhance distribution for our investment team and offer a resilient, long-term proposition for our clients. Together, we will offer a fully resourced, best of breed fund management capability which is true to our heritage and ready to embrace the future with its myriad challenges and opportunities.
“It was very important that our existing clients would be unaffected through the management of their investments and the service they receive. This is being delivered, with no changes to the Majedie investment team who will continue managing accounts and funds to the same investment process as before the acquisition.
“We thank all of our clients for their support and confidence in Majedie over the past two decades. We are now focused on ensuring there is a seamless transition to Liontrust over the next few months and a strong foundation from which to continue to deliver for clients over the years ahead.”