Liontrust, the specialist fund management group, has announced that it has conditionally agreed to acquire the entire issued share capital of GAM Holding AG (GAM), a global investment management firm with GAM’s Investment Management division having AuMA of CHF 23.3 billion (£20.9 billion).
The acquisition will create a global asset manager with £53 billion in AuMA on a pro forma basis and accelerates the development of Liontrust by meeting all seven of its strategic objectives.
The Proposed Acquisition, before transaction and re-organisation costs, is expected to be
significantly earnings enhancing with regards to adjusted diluted earnings per share for the
financial year ending 31 March 2025 (being the first full year post-completion) and in future
The Consideration will be satisfied by the issue of 9.4 million new ordinary shares in Liontrust,
and it is expected that GAM shareholders will own approximately 12.6 per cent. of the
combined group on Completion. The acquisition is expected to complete in the 4th quarter of 2023.
Some key highlights include:
• Broadens Liontrust’s fund range and asset classes, including in fixed income, thematic
equities and alternatives. This provides a platform for growth by providing enhanced client
solutions globally and reduces the correlation of returns across the fund range through
• Twelve funds will have assets of more than £1 billion (seven managed by Liontrust and five
by GAM) and both asset managers have a heritage of responsible investing;
• Expands distribution globally, with 62% of GAM’s AuMA sourced from continental Europe
while Liontrust is a leading asset manager in the UK with the 6th strongest brand (Source:
• Increases Liontrust’s physical presence in Europe, including a long history in Switzerland, and
provides offices in Asia and the US and therefore a platform for expansion in those areas;
• Creates a broader client base for the combined group’s funds globally and benefits from the
existing strong relationships with distributors of both asset managers;
• Adds experienced investment teams, including nine fund managers rated A to AAA by
• By AuM, 75% of GAM’s funds were in the 1st or 2nd quartile of their respective sectors over 3
and 5 years to 31 March 2023
• Liontrust will provide an attractive home for the active fund managers at GAM: they will
benefit from Liontrust’s focus on independent, distinct processes; strong risk and compliance
culture and framework; delivery across sales and marketing; a strong brand; financial stability;
and the support provided by the business processes and infrastructure;
Fund management services
• GAM has reached agreement in principle to transfer all third-party fund management
services clients serviced out of Luxembourg and Switzerland to a specialist asset servicing
company active across Europe, with further details to be announced by GAM in due course.
John Ions, Chief Executive of Liontrust, said: “This is a significant acquisition that accelerates the growth of Liontrust through enhancing our distribution globally, product capability and investment talent. Liontrust and GAM are both client centric businesses that thrive on providing solutions and first-class service. The enlarged company will provide the platform from which to deliver this to a broader client base.
“We have been impressed by the quality of the investment teams at GAM. There is commonality in that Liontrust and GAM are both committed to independent and distinct processes for each of their investment teams. Liontrust specialises in providing an environment in which investment teams can thrive, including through the excellence of our sales and marketing and a robust business infrastructure, strong risk and compliance culture, and the stability that comes with financial strength.
“Liontrust is committed to the international business and client relationships that GAM has built. We are especially pleased to have such a strong operation in Switzerland which has been so important to GAM’s heritage. The quality of the investment teams across the different asset classes, the talent in the business and the breadth of the distribution at GAM, combined with Liontrust’s existing investment capability and strong brand, sales, marketing, and communications, gives me great confidence we will grow the enlarged business to create long-term value. Liontrust and GAM will work together to provide a seamless transition for clients and enhancing the service provided in the future.”
Peter Sanderson, CEO of GAM, said: “I am delighted we have agreed this transaction with Liontrust. Our distinctive approaches to investing and culture are closely aligned, and this combination represents the best opportunity for our talented team of professionals at GAM to continue to provide clients with high conviction active investment strategies. The resulting business will have a strong balance sheet, a broader array of excellent investment products, and a global distribution footprint from which to deliver growth that our shareholders can participate in the future.”
David Jacob, Chairman of GAM, said: “I would like to thank all my colleagues at GAM for their hard work and dedication while we worked to determine the best option for the future of the firm. I am confident that the loyalty of our clients will be rewarded since they will now benefit from the increased capabilities and stability of the combined firm. Our shareholders have been patient, and I and my fellow Board members are unanimous in our recommendation that they should tender their shares in response to the offer from Liontrust.”
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