Boutique fund manager Perennial Value announced today that its senior executives plan to acquire the remaining 42.4 percent interest in the business from IOOF Holdings.
Perennial Value is active investment management firm established in 2000, which invests $5.6 billion on behalf of institutional and retail clients through a suite of trust products and discrete portfolios.
“We’re delighted to announce our intention to acquire the remaining IOOF interest in our business. This represents a further significant alignment of interests between our staff and our clients, and is a strong vote of confidence in our continuing commitment to delivering investment excellence, fostering a specialist investment management culture, and building a successful and sustainable funds management business,” Perennial Value managing director John Murray said.
Perennial’s investment products will continue to be offered through IOOF platforms as well as other leading platforms and wrap accounts.
Anthony Patterson, executive director of Perennial, said the transaction will see the positioning of the Perennial Group as a multi-boutique investment firm.
“We currently operate six boutique investment businesses, three under the Perennial brand, large cap Perennial Value, Perennial Value Smaller Companies and the Perennial Solutions Group, and three boutique affiliates Daintree Capital, an absolute return fixed income business, Fairlight Asset Management, a Global Small Mid Cap specialist and eInvest a provider of active exchange-traded managed funds.”
“Our focus for the immediate future is as always on delivering good outcomes for our investors, but with an eye to the longer term.”
Mr Patterson said that in recent years the fund manager has maintained a strong focus on building actively managed niche capabilities. Perennial recently closed its Micro Caps Trust at $200 million and also completed a capital raising for its Perennial Private to Public Opportunities Fund, a wholesale offer taken up predominantly by higher net worth and family office investors.
“A major focus of this fund is investing in well-managed, strongly growing unlisted companies,” Mr Patterson said.
“We are very optimistic about the prospects for both Daintree Capital and Fairlight, which are both run by top-shelf investment executives who are passionate in their aim of delivering strong returns for their investors. Our ongoing development of eInvest reflects our view of growing investor demand for actively managed exchange-traded funds.”
IOOF CEO Renato Mota said the divestment allows the company to focus on its core wealth management capabilities.
"We are committed to our advice-led strategy and delivering better outcomes for clients and members,” he said.