Momentum Global Investment Management Limited (MGIM) has agreed to purchase Seneca Investment Managers (SIML), creating a business with £4.7bn in assets.

Transaction details

The combination will bring together MGIM’s three Focus Funds and range of seven managed model portfolios along with VT Seneca Funds and the Seneca Global Income & Growth Trust.

The Seneca funds will adopt the Momentum brand.

However, the merged entity will maintain operations in MGIM’s London office and Liverpool where Seneca is based.

The transaction will combine the VT Seneca Funds and the Seneca Global Income & Growth Trust plc, managed by SIML, with MGIM’s three Focus Funds and range of seven managed model portfolios to create a comprehensive offering for financial advisers, DFMs and retail investors.

The deal, which awaits regulatory nod, will not lead to layoffs, stated the companies.

SIML CEO David Thomas said: “This deal adds value to all parties: it builds scale while maintaining the nimbleness and dynamism of a boutique; it strengthens the investment team; and it creates a comprehensive range of multi-asset funds and model portfolios, alongside our flagship investment trust client.”

Thomas will step down as SIML CEO upon deal completion but remain a non-executive director at the merged business.

MGIM chief will be the CEO of the consolidated group.

van Heerden noted: “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.”

Founded in 1998, MGIM manages around £4bn in assets. The business is part of Momentum Metropolitan Holdings listed in Johannesburg.

Multi-asset value investment specialist Seneca was set up in 2002 and manages over £600m in assets.