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July 1, 2021

Vontobel buys remaining 40% stake in TwentyFour Asset Management

By Verdict Staff

Vontobel has taken full ownership in TwentyFour Asset Management with the purchase of the remaining 40% interest in the London-based boutique, which specialises in fixed income.

Financial terms of the deal were not disclosed.

Vontobel said that it is financing the deal using its own fund and a part of the transaction will be paid in the form of Vontobel shares.

The Zurich-based private bank bought 60% of TwentyFour in 2015, with plans to remaining 40% in two tranches in 2021 and 2023.

The company said it is now acquiring the whole of the remaining holding in one tranche this year.

Vontobel CEO Zeno Staub referred to the deal as the logical next step in the company’s diversification and growth strategy.

Staub said: “From the very beginning, we have been impressed by TwentyFour’s expertise and entrepreneurial culture, as well as its continuous growth.

“I look forward to our ongoing collaboration with our colleagues at TwentyFour, who are all supportive of this acquisition.”

Founded in 2008, TwentyFour offers a range of fixed income products to institutional investors. It currently has around 75 employees.

Since Vontobel’s purchase of majority holding in the firm, its advised client assets have increased from $6.92bn (CHF 6.4bn) to $26.3bn (CHF 24.2bn).

Under the agreement, TwentyFour will remain operationally independent.

The firm will continue to cater to its clients from London and New York offices, as well as through Vontobel’s international network.

TwentyFour CEO Mark Holman said: “After six years of working very closely together with Vontobel as a majority shareholder, the decision to move to full ownership was not a difficult one.

“As a direct consequence of our partnership we have been able to spread our investment expertise to a far greater audience as we have moved from being a domestic player to genuinely global.

“Importantly though we have preserved the independence and entrepreneurial spirit of being a boutique, which I know is something that both our clients and staff really value and was at the core of our decision making for this transaction.”

Recently, Vontobel announced the plan to connect its structured products platform deritrade to the Avaloq Wealth platform.

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