Liontrust Asset Management is buying the asset management arm of Martin Gilbert-chaired River Global Holdings for up to £9.7 million in shares.
The transaction will add £2.7 billion in assets under management to Liontrust’s existing £21.7bn, taking the combined group’s pro forma total to £24.4bn. This is a small add-on, but it widens Liontrust’s scope.
River Global Holdings was formed by bringing together River & Mercantile Asset Management, SVM Asset Management and Saracen Fund Managers, and specialises in long-only equity strategies across UK, Indian and global markets.
The deal price comprises £7.6m in new Liontrust shares, plus a contingent payment of up to £2.1m in shares tied to the conversion of the European Opportunities Trust mandate into an open-ended fund.
Mr Gilbert will join the Liontrust board as a non-executive director on completion.
Liontrust chief executive John Ions said the deal would diversify the group’s investment styles and client base, and provide River Global’s fund managers with broader distribution in the UK and internationally. It excludes River Global’s stake in the Parmenion fund platform
Completion is subject to regulatory approvals and a vote by River Global shareholders.
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