This acquisition is expected to bolster the growth potential of the combined business, both in the UK and other global markets.
The deal combines SIML’s strong UK presence with MGIM’s global client base to market products domiciled in the UK, Luxembourg and Guernsey. (Credit: Tumisu from Pixabay.)
Momentum Global Investment Management (MGIM), the UK-based subsidiary of Momentum Metropolitan Holding, has announced acquisition of Seneca Investment Managers (SIML).
This acquisition is expected to considerably bolster the growth potential of the combined business, both in the UK and other global markets.
Both MGIM and SIML are multi-asset management businesses that focus on outcome-based investing.
The companies are said to share a history of close partnership with financial advisers, discretionary fund managers (DFMs) and wealth managers staring from 1998 and 2002.
No redundancies are expected as part of the transaction, which is subject to UK regulatory approvals.
Merged entity to have £4.7bn of assets under management
The unified entity, which is expected to have assets under management of £4.7bn, will continue to offer its services to clients, with offices in London and Liverpool.
The acquisition combines SIML’s strong UK presence with MGIM’s global client base to market products domiciled in the UK, Luxembourg and Guernsey.
As part of the agreement, VT Seneca Funds and the Seneca Global Income & Growth Trust managed by SIML will merge with MGIM’s three Focus Funds and range of seven managed model portfolios to create a comprehensive offering for financial advisers, DFMs and retail investors.
The Seneca funds will assume the Momentum brand but will continue to follow SIML’s naming conventions.
MGIM chief executive Ferdi Heerden said: “This is a very exciting acquisition. The two teams complement each other well and have a strong cultural fit. The acquisition will enable MGIM to meet the growing demand for multi-asset investment solutions from advisers, discretionary fund managers and their clients.
“Personal service and engagement are at the core of both MGIM and SIML and will remain a primary focus of the combined business.”
SIML chief executive David Thomas added: “MGIM is a partner that shares our ideals and outcome-based approach to investment: the fit is therefore very compelling and enables us to provide continuity and enhanced service to our clients, partners and investors.
“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.”