Northern Lights Capital Management, a US-based asset manager, has signed an agreement to merge with Australia-based Treasury Group (TRG) to form a new business that will offer strategic support to global asset managers.
The combined company is intended to hold interests in asset managers that collectively have more than $46 billion of AUM as of 30 June 2014.
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The merger will see the formation of a new Australian Trust and Trustee Company which will own the interests in 1 boutiques across a wide range of asset classes.
Subject to shareholder approval, the transaction is expected to be completed in October 2014.
Under the merger, Treasury Group and Northern Lights will each retain a 61% and approximately 39% holdings in the merged entity respectively and four Northern Lights staff will join the existing five directors on the TRG Board.
Andrew McGill will be managing director and CEO of the merged group and Mike Fitzpatrick will be chairman, while Northern Lights co-founders Tim Carver and Paul Greenwood will be executive directors and Jeff Vincent, CEO of Laird Norton, and Gilles Guerin, CEO of BNP Paribas Capital Partners, will join the TRG Board as non-executive directors.
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By GlobalDataThe merger is worth a $193 million deal and boost Treasury Group’s FUM to just under $50 billion. Initially, both the companies will continue to operate under their existing names and brands.
Following the merger, management and operations expect to be integrated and the business plans to operate as one group under the direction of a common board of directors.
The deal is consistent with Treasury Group’s stated growth strategy and delivers strengthened investment, increased portfolio diversification, financial benefits and distribution capabilities.
Paul Greenwood, managing director at Northern Lights, said: "Through this partnership, we are bringing together the expertise and the resources to create a true global leader in the multi-boutique asset management space."
Andrew McGill, managing director and CEO of Treasury Group, said: "The partnership delivers significantly strengthened product distribution capability and builds a strong foundation, ideally positioning us for our next phase of growth across international markets."
