In a statement to the ASX accompanying its half-year result, Magellan has announced the acquisition of Australian equities manager Airlie Funds Management and US distribution firm Frontier Partners Group.
The acquisitions come as Magellan announces a net profit after tax of $53.5 million for the half-year, down 39 per cent on the prior corresponding period. Magellan’s underlying profit after tax was $109.2 million, up 25 per cent.
The total consideration for the acquisitions of Airlie Funds Management and Frontier Partners Group was US$15 million in cash and approximately 4.5 million Magellan shares.
Airlie is an Australian equities boutique fund manager with more than $6 billion in FUM, targeting institutional and high-net-worth clients.
The firm was founded by John Sevior and David Cooper in 2012, with Matt Williams joining in 2016.
Frontier Partners Group, which has been Magellan’s “distribution partner” in the US since 2011, was founded in 1993 by Bill Forsyth.
The tie-up between Frontier and Magellan is worth $12.8 billion in FUM, according to Magellan chief executive Hamish Douglass.
The acquisition of 100 per cent of Airlie’s shares is expected to complete on 28 February, and the purchase of Frontier was finalised on 5 February.
Magellan plans to launch the Airlie Industrial Share Fund Active ETF in “the coming months”.
