Listed asset manager Polar Capital today informed the market of its intention to acquire 100 percent of the issued share capital of Dalton Capital Limited, the parent company of Dalton Strategic Partnership.
Dalton is a UK-based boutique asset manager with assets under management (AuM)of £1.24 billion as at 15 December 2020. However, this figure does not include the Velox Fund which is on Dalton’s platform but is not part of the transaction.
According to the RNS statement, Dalton has a strong European equity capability and distribution reach. The AuM includes the Melchior European Opportunities Fund and related segregated accounts, managed by David Robinson, together with £0.12 billion of European long/short funds managed by Leonard Charlton and three smaller Global and Asian funds managed by Nick Mottram.
The costs of the transaction are expected to be £6.2m in total and will include £2.6 million of termination costs (which will be incurred post completion and have been deducted in arriving at the circa £15.6 milion consideration) and £3.6 million of reorganisation costs.
The termination and reorganisation costs will be treated as exceptional items to be incurred in the financial years ending March 2021 and March 2022. Following the completion of the Transaction it is anticipated that the Acquisition will, on an adjusted diluted earnings per share basis, be immediately earnings enhancing.
Gavin Rochussen, CEO, Polar Capital said in a statement: "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.
“We are confident that the acquisition will be immediately earnings enhancing and look forward to welcoming the DSP team and clients to Polar."
Nick Mottram, CEO, Dalton added: " 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.”
The acquisition is subject to FCA approval and is expected to complete in Q1 2021 with a transition of the DSP business onto the Polar Capital platform during Q2 2021.