Momentum acquires Seneca Managers in UK

Momentum’s international investment management division, Momentum Global Investment Management (MGIM), has reached an agreement with the founding members and shareholders of Seneca Investment Managers to acquire the investment management business for an undisclosed amount.

Momentum responded to queries about the purchase price and terms of the transaction, such as the usual guarantees relating to profitability of Seneca and its ability to retain clients’ funds, by saying the information is confidential.

Seneca is based in Liverpool in the United Kingdom – and also has an office in London.

According to a press release issued simultaneously by Seneca in the UK and Momentum in SA, the acquisition will significantly enhance the growth potential of the combined business in the UK and in other global markets where Momentum operates.

Seneca, founded in 2002, has more than £600 million (about R12.8 billion) under management, largely housed in a range of equity funds.

The acquisition of Seneca will increase MGIM’s total assets under management by nearly 15% to £4.7 billion.

While the press release refers to a “combined” business and being a “partner”, the transaction looks like a case of Momentum buying some clients’ funds, as asset management companies are prone to do from time to time.

The difference is that it is quite a large transaction.

Jeanette Marais, CEO of Momentum Investments and chair of MGIM, says the acquisition will provide MGIM with growth opportunities in a large investment market.

“The transaction brings together two successful multi-asset management businesses that will provide a stronger offering and broader capabilities for our clients in SA and globally.”

This article first appeared on Moneyweb and was republished with permission.

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