UK asset manager Liontrust is not primarily looking to leverage cost savings by acquiring GAM. The CEO has other plans, as he explains in an interview.
Liontrust's chief executive, John Ions, has a reputation for being an avid buyer of companies. The acquisition of Swiss asset manager GAM is the latest in a string of acquisitions he has overseen at the helm of the London-listed group.
Based on the most recent information available, the new entity will have $65.8 billion of assets under management, according to calculations byfinews.asia.
Hungry Lion
Just over a year ago, Liontrust completed a 120 million pound ($151 million) takeover of Majedie Asset Management which came three years after acquiring boutique Neptune Investment Management for 40 million pounds.
In 2020, Liontrust completed the acquisition of Architas' UK investment management business.
On the Hunt for More
«We wouldn’t do an acquisition if we didn’t feel the infrastructure of the business was in a position to handle that. You don’t go jogging when you’ve got indigestion,» Ions told «Financial News» when asked about the number of deals completed in quick succession.
With around 110 million pounds of cash on its balance sheet, Liontrust has options for additional transactions.
Broadening the Product Range
The GAM deal will expand Liontrust's distribution capabilities and presence in Europe, while broadening its product range to include fixed income, thematic equities, and alternative investments, according to the report.
Ions says there is some overlap between GAM and Liontrust, but the acquisition is not about merely squeezing costs.
Multi-Year Integration
«We’re gaining a much broader business on the fund management side and a larger distribution footprint. That gives us a better platform to pursue organic development,» Ions said.
It should be noted that Liontrust is only acquiring GAM's investment management business, and the Swiss asset manager will seek to unload its fund services business.
