Mergers and acquisitions  

MGIM takes over Seneca to form £5bn fund house

MGIM takes over Seneca to form £5bn fund house

Momentum Global Investment Management is to buy Seneca Investment Managers, creating a fund house with nearly £5bn assets under management.

MGIM announced today (October 13) it had agreed to acquire Seneca, subject to regulatory approval, as it looked to enhance its growth potential.

The transaction will see the new £4.7bn asset manager maintain its presence in London and Liverpool and brings together Seneca’s UK presence with MGIM’s global client base. No redundancies are foreseen as a result of the transaction.

Both multi-asset management businesses, the new asset manager will boast a fund range which includes the VT Seneca funds and the Seneca Global Income and Growth trust alongside MGIM’s focus funds and managed portfolio offering. The Seneca funds will assume the MGIM brand.

Ferdi van Heerden, chief executive of MGIM, said: “This is a very exciting acquisition. The two teams complement each other well and have a strong cultural fit. 

“The acquisition will enable MGIM to meet the growing demand for multi-asset investment solutions from advisers, discretionary fund managers and their clients.”

Mr van Heerden said the combined business created a “strong foundation” on which to accelerate its growth as an investment provider to the UK adviser market.

He added: "Personal service and engagement are at the core of both MGIM and SIML and will remain a primary focus of the combined business.

“The integration of the two companies will therefore be carefully managed through a phased approach with the aim of carefully looking after the interests of the existing investors, supporting clients and employees of both MGIM and SIML." 

The deal comes despite Seneca’s chief executive David Thomas telling FTAdviser last year that he did not expect the firm to be involved in the wave of consolidation gripping the fund management market.

Speaking about today’s announcement, he said: “MGIM is a partner that shares our ideals and outcome-based approach to investment: the fit is therefore very compelling and enables us to provide continuity and enhanced service to our clients, partners and investors.”

Mr Thomas said the deal added value to all parties as it built scale while maintaining the nimbleness and dynamism of a boutique, strengthened the investment team and created a comprehensive range of multi-asset funds and model portfolios. 

He added: “Importantly, investors will enjoy ongoing support and servicing delivered by a larger client services team. 

“Given the significant growth prospects for the combined business, the future opportunities for all employees are considerably enhanced.” 

The asset management industry has seen the trend of mergers and acquisitions accelerate in recent years, with big name examples including Liontrust’s acquisition of Neptune, the Premier and Miton merger and Jupiter’s takeover of Merian Global Investors.

imogen.tew@ft.com

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