LONDON - Momentum Global Investment Management Limited (MGIM), a subsidiary of Momentum Metropolitan Holdings, has struck a deal to buy Seneca Investment Managers for an undisclosed sum.
The deal, which is subject to regulatory approval, creates an asset management business with £4.7bn (R101bn) in assets under management, operating from MGIM’s London and Seneca’s Liverpool bases. There are not expected to be any redundancies following the deal.
Outlining the rationale for the tie-up, MGIM chief executive Ferdi van Heerden said the combined businesses create a strong foundation on which to accelerate growth as an investment solutions provider to the UK adviser market.
‘Personal service and engagement are at the core of both MGIM and Seneca and will remain a primary focus of the combined business,’ Van Heerden said.
‘The integration of the two companies will therefore be carefully managed through a phased approach with the aim of carefully looking after the interests of the existing investors, supporting clients and employees of both MGIM and Seneca’.
Both MGIM and Seneca have focused their businesses around multi-asset strategies since their launches in 1998 and 2002 respectively.
MGIM has a global client base with products domiciled in the UK, Luxembourg and Guernsey. Seneca has established a strong presence in the UK.
Seneca chief executive David Thomas described the fit between the two businesses as ‘compelling’, highlighting the duo’s shared ideals and outcome-based approach to investment.
‘This deal adds value to all parties: it builds scale while maintaining the nimbleness and dynamism of a boutique; it strengthens the investment team; and it creates a comprehensive range of multi-asset funds and model portfolios, alongside our flagship investment trust client,’ Thomas said.
‘Importantly, investors will enjoy ongoing support and servicing delivered by a larger client services team. In addition, given the significant growth prospects for the combined business, the future opportunities for all employees are considerably enhanced.’
Seneca’s suite of funds includes the VT Seneca Diversified Income fund and the £60m Seneca Global Income & Growth trust, managed by the four-strong team of Mark Wright, Richard Parfect, Tom Delic and Gary Moglione. MGIM runs three Focus funds and range of seven model portfolios.
On completion the Seneca funds will assume the Momentum brand.