Schroders sells stake in UK fund house

Schroders sells stake in UK fund house

Schroders has sold its entire 41 per cent holding in UK fund house RWC Partners. 

The buyers of the fund manager include the company’s staff and US investment firm Lincoln Peak Capital, which will own 27 per cent of the business.

Lincoln Peak specialises in investments in asset management companies, typically backing the existing management team. 

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RWC is based in London and has £13.9bn in assets under management across the retail and institutional sectors.

Data from companies house showed the firm made a profit of £9m in 2018, compared with £6.7m in 2017.

In June it was announced that RWC would manage some of the £3bn of assets that St James's Place clients had with Neil Woodford. 

Schroders received a dividend of £2.14m for the 2018 calendar year, based on the number of shares it owned and the total dividend paid out. The fund house declined to comment on the deal. 

Schroders first acquired its stake in RWC in 2010. Its now chief executive Peter Harrison previously held the same role at RWC and is also selling his stake.

Mr Harrison had started his career at Schroders as an equity analyst before moving to RWC where he became chief executive and later chairman.

Dan Mannix, chief executive of RWC, said: “We would like to thank Schroders for the support they have shown our organisation over the last 9 years. 

"In Lincoln Peak, we welcome a new shareholder to RWC who we have known for many years. Lincoln Peak is a very attractive partner for us who has committed to our organisation for the next decade and beyond."

He added: “Our priority has been to secure a shareholder who supports the commitments we have to our clients and investment teams. 

"We are proud to differentiate our organisation through being independent, private and owned by very long-term shareholders who define success by the quality of services we provide to our clients and fulfilling responsibilities to our other stakeholders."

The deal is subject to regulatory approval. 

In July, Schroders bought a majority stake in Blue Orchard, an investment firm focused on ESG investing, and also partnered with Lloyds Banking Group to launch Schroders Personal Wealth, an advice firm.