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Polar Capital to enter joint venture
Posted on Friday, 14 February 2020 14:57
Polar Capital Holdings has agreed to buy the international value and world value equity teams of US-based investment management firm First Pacific Advisors (FPA) for an undisclosed sum.
The strategies will form a joint venture with the acquiror under the name Phaecian Partners.
Completion is slated to take place during the third or fourth quarter of 2020.
Following closing, the strategies, led by managers Pierre Py and Greg Herr, and each FPA fund, will transfer over to Polar Capital and be reorganised under a newly established series trust.
The transaction remains subject to regulatory and shareholder approval.
Polar Capital will provide operational support and distribution services across multiple jurisdictions to help drive the strategies’ growth, while allowing the managers to deliver strong returns to their clients.
As a result of the transaction, the purchaser will also be able to offer the teams a platform in which to build a US-based international and global equity franchise.
J Richard Atwood, managing partner at FPA, said: “Polar’s business model is the right fit for Pierre and Greg as they pursue growth with institutional and overseas investors.
“We are glad to have identified and launched strategies that have added value for clients and believe this is an ideal alignment of interests for all stakeholders, particularly current investors in these strategies.”
As of 31st December 2019, Py and Herr managed assets worth USD 1.00 billion in three pooled vehicles and three institutional accounts such as the FPA Paramount Fund and the FPA International Value Fund.
Zephyr, the M&A database published by Bureau van Dijk, shows there were 1,115 deals targeting portfolio management companies signed off worldwide in 2019.
In the most valuable of these, Brookfield Asset Management agreed to snap up US-based Oaktree Capital for USD 4.80 billion.
This was followed by SPIC Dongfang New Energy’s acquisition of China’s National Power Investment Group for CNY 15.11 billion (USD 2.16 billion).
© Zephus Ltd