Clime and Ralton move one step closer to combining their operations.
Clime Investment Management (CIM) Limited has finalised plans to transfer almost $300 million in funds under management (FUM) to Ralton Asset Management.
In a letter to the Australian Stock Exchange, the company confirmed the completion of due diligence around the team.
Clime has previously said the agreement will create an “industry leader” in the managed accounts sector, with the combined managed account portfolio said to represent around $330 million in funds under management.
Following the announcement that the managed fund would be looking to bring its SMA/MDA operations together with Ralton in December, Clime confirmed that it now intends to transfer a total of $270 million in FUM in exchange for a 75 per cent stake of the company.
Clime said that the final equity structure of the deal will be finalised in early February 2022, though the terms of the agreement itself include the option to fully acquire Ralton as soon as the second half of 2022.
As part of the transaction, Ralton chief investment officer Will Rigall is also being promoted to CIO of CIM.
Commenting on the announcement, Mr Rigall argued that the complementary competencies of the two companies would bring benefits across the board.
“Bringing together the combined scale and capabilities of Ralton and Clime under one operating entity will enable the combined Clime Investment team to provide superior outcomes to both advisers and clients across a range of investment solutions,” he said.
Clime’s efforts to reformat itself come following several boardroom shake-ups in late 2021.
In August 2021, former Clime director Neil Schafer was voted off the board by shareholders.
Then, Brett Spork and Peter Beaumont stepped down from the board in September 2021.
Dr Michael Kollo, Susan Wynne and Ronni Chalmers stepped in to fill the void shortly after, followed by Clare Bibby in October.
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