Merian Global Investors (MGI) has agreed to buy the multi-asset business of Kestrel Investment Partners, in its first deal since its spinoff from Old Mutual.
Under the agreement, MGI will take over the management of the $151m Kestrel Global Portfolio along with associated intellectual property.
As part of the deal, MGI will absorb Kestrel’s multi-asset team. Among Kestrel staff migrating to MGI are its joint CEO John Ricciardi, as well as portfolio managers Ian Forrest and Dan Matthews.
Ricciardi will now report to MGI CEO Mark Gregory. Also moving to MGI are three system analysts.
“The support of MGI’s talented distribution and operational teams will allow us to develop and grow our strategy, while its commitment to having “no house style” will afford us the freedom to manage our products with the flexibility that’s resulted in long-term outperformance for our investors,” Ricciardi stated.
The Kestrel multi-asset team also plans to roll out a long/short strategy next year in addition to growing its existing strategy.
Gregory said: “The Kestrel multi-asset team’s proven process is hugely compelling and I’m delighted that we’ve signed an agreement to secure its best-in-class business.
“John and his colleagues are hugely experienced and have a fantastic track record. With the backing of our strong distribution presence and the launch of a new long/short strategy, we’re confident that we will be able to grow the team’s assets under management.”
The transaction, whose terms were not disclosed, is pending shareholder and regulatory approvals.
Deal closure is anticipated this December.
MGI was spun out from Old Mutual last year in a management buyout backed by private equity firm TA Associates. MGI was previously known as Old Mutual Global Investors.