View more on these topics

Henderson to acquire US asset manager for $200m

Henderson Global Investors is set to acquire US equities asset manager Geneva Capital Management for up to $200m (£117m).

Henderson is acquiring the firm, which has $6.3bn assets under management, to strengthen its North American presence and launch US equity retail products.

Wisconsin-based GCM specialises in mid- and small-cap equity growth strategies and is employee-owned by a team of 25 people.

Henderson will pay an initial upfront consideration of $130m, split into three tranches, followed by a deferred consideration of up to $45m to be paid out over five years if revenue retention targets are met.

There will be a final earn-out of up to $25m payable over five years if GCM achieves targets in relation to revenue growth. 

This transaction will be fully funded from Henderson’s existing cash resources, with transaction and integration costs expected to be around $10m.

Henderson chief executive Andrew Formica says: “Developing our presence in North America is a strategic priority for Henderson. The acquisition of Geneva is a major step towards achieving our growth ambitions as a global asset manager.”

Philippa Gee Wealth Management managing director Philippa Gee says: “The margins in the UK are getting so tight that companies are having look at expanding and taking over companies to make extra margins. 

“Also, we are starved of good US fund managers – with many people having to go for passives instead – so this could be a good move for Henderson.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com