UK-based specialist active asset manager Polar Capital Holdings has agreed to acquire 100% of the issued share capital of Dalton Capital from its shareholders.
Dalton is the parent company of Dalton Strategic Partnership (DSP), a UK-based boutique asset manager that oversees £1.24bn in AuM as of 15 December 2020.
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The deal is expected to be valued at £6.2m in total, including £2.6m in termination costs and £3.6m in reorganisation costs.
Subject to FCA nod, the deal is anticipated to conclude in the first quarter of next year. A transition of the DSP business onto the Polar Capital platform is slated for the second quarter of 2021.
The Velox Fund, which is on the Dalton platform, is not part of the deal.
London-based Dalton is an independent, asset manager with notable European equity capability and distribution reach.
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By GlobalData‘Strong strategic rationale’
According to Polar Capital, the deal has a strong strategic rationale for its growth and diversification strategy.
It provides the company with a European investment team, which is said to complement its current European Income team.
Moreover, this acquisition enables Polar Capital to scale up its wholesale and institutional distribution in Europe, especially in Germany.
In addition, the deal covers the current Luxembourg SICAV umbrella which is expected to enhance Polar Capital’s product range for international distribution.
Comments
Polar Capital CEO Gavin Rochussen said: “The Acquisition of Dalton Strategic Partnership is further delivery of our growth and diversification strategy and is an excellent strategic, geographic and cultural fit with our existing business.
“It delivers greater scale, new capabilities and an expanded distribution reach in Europe, as well as highly experienced investment teams with a good track record. This acquisition will also provide Polar Capital with its first Luxembourg SICAV.”
He further added that the new purchase will immediately boost the company’s earnings.
Speaking on the deal, Dalton CEO Nick Mottram said: “We have long been impressed by Polar Capital’s strong client focus, proposition and growth aspirations and are delighted to be joining the Group.
“It is a good cultural fit for us and that was important when we were looking to join a larger group, as we wanted to ensure we retained investment autonomy over our funds, something that our founding partner, Andrew Dalton, believed in fundamentally when he started the firm back in 2002.”
