Fund manager targets acquisitions after US deal

Fund manager targets acquisitions after US deal

The chief executive of fund house RWC is eyeing acquisitions following US firm Lincoln Peak taking a stake in his business. 

Lincoln Peak bought its 27 per cent stake in RWC from Schroders and other investors this week.

Dan Mannix told FTAdviser RWC’s strategy will not fundamentally change following the deal, with a continued focus on the intermediary and institutional market rather than retail, but he added that acquisitions were now more likely. 

He said: “Lincoln Peak bring a lot to the table, they are very experienced at integrating businesses and in the long-term planning of the development of fund businesses, what they are not really bringing for example is extra experience in distribution.

"I think buying investment capability from outside is something we want to do.”

RWC recently won a mandate to manage money for St James's Place that had previously been run by Neil Woodford and also has a mandate to run money for Openwork. 

Consolidation has been a feature of the asset management market in recent years, with giant deals such as the merger of Aberdeen and Standard Life in 2017, and the more recent smaller tie-ups between Miton and Premier and Liontrust and Neptune. 

Mr Mannix believes the more volatile investment markets of the past year will aid the waive of consolidation in the market. 

He said: “Fees are changing across all product areas because there is more scrutiny, and at the same time less liquidity in the markets means more pressure on performance.

"Some firms have been earning high fees for running mediocre products but in less liquidity fuelled markets that changes.”  

RWC made a profit of £9m in 2018, significantly up on the £6.7m in 2017. It has assets under management of more than £13bn.

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