The listed asset manager says it expects funds under management to swell over $130 billion as it kicked off a capital raising to acquire a US-based value manager.
In a statement, Pendal Group chairman James Evans said the asset manager’s acquisition of Thompson, Siegel & Walmsley LLC (TSW), announced last week, would turbocharge Pendal’s US market presence.
“The board believes that the acquisition will fast-track growth in the US, the largest equity market in the world,” Mr Evans said.
“It will deliver the opportunity to generate new FUM through the doubling of our addressable market in the US and our ability to distribute both TSW and JOHCM products through an expanded global distribution network.”
The asset manager, who also owns London-based J O Hambro Capital Management (JOHCM), said its consolidated funds under management would rise 30 per cent to over $132 billion after the acquisition of TSW, with FUM in the US increasing by around 112 per cent to $44.7 billion.
“The acquisition of TSW is deliberately strategic and expands our successful diversified business model in the largest equity market in the world,” Mr Evans said.
“It delivers both scale and diversification benefits across investment capabilities, asset classes and channels.
“The board believes that the acquisition will strengthen the diversity of earnings and accelerate growth and shareholder returns.”
Following an institutional placement of $190 million, the group kicked off its three-week-long capital raising for retail investors – who are eligible to purchase up to $30,000 worth of Pendal shares as a result of the raising – on Monday.
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