Franklin Templeton Investments has bought Rensburg Fund Management for £45m from Investec.
The transaction is subject to regulatory approval and is expected to complete in early 2011.
RFM, which is based in Leeds, has approximately £880m in UK equities.
Investec bought Rensburg Sheppards in a £412m deal which completed on June 25, 2010. In July, Investec confirmed it was considering selling RFM after receiving a number of enquiries about the firm.
Investec appointed Fenchurch Advisory Partners to advise on strategic options for RFM, which included the sale of the firm as well as the considered growth of the business under its current ownership.
Franklin Templeton Investments managing director Europe Jamie Hammond adds: “We are best known in the UK for our global and specialist funds and we are looking to develop core UK equity products, which are an important asset class for UK investors.
“Rensburg Fund Management brings a very strong track record and reputation and I am confident that this new partnership will strengthen Franklin Templeton’s position in the UK market as we introduce Rensburg Fund Management’s products to our key partners and clients, such as large cross-border banks and institutions. This is an exciting and important development, which underscores Franklin Templeton’s commitment to further enhancing its local presence in the UK.”