Vontobel Asset Management has bought a majority stake in fixed income boutique TwentyFour Asset Management.
The Swiss fund manager, which controls CHF191 billion (£135 billion) has acquired 60% of the London-based firm as part of its strategy to boost its presence in the UK and extend its fixed income business. Vontobel intends to buy the outstanding 40% over the longer term.
The transaction will also increase TwentyFour's global reach through Vontobel's distribution network.
TwentyFour, which is owned by 10 partners, was formed in 2008 and has attracted £4.4 billion in assets under management across a range of public funds and segregated accounts. Between them the pair will control around CHF17 billion in fixed income assets.
The partners will continue to manage TwentyFour’s day-to-day operations, retaining full authority over fund investment decisions, with the firm's brand remaining in place. They have also agreed to reinvest a significant share of their consideration into existing TwentyFour or Vontobel investment funds.
In line with Vontobel’s multi-boutique structure, both firms’ investment platforms will operate independently of each other to ensure a continuation of their strong performance record.
Commenting on the deal, Vontobel Asset Management and member of the group executive management Axel Schwarzer said: 'TwentyFour’s expertise, performance culture and the consistent organic growth have convinced us.
'The acquisition will set a strong foundation for Vontobel Asset Management’s further growth in the UK, which is one of the most important asset management markets in the world and accelerates the international growth of our business.'
TwentyFour chief executive Mark Holman (pictured) added: 'We are delighted to welcome Vontobel as a committed long-term partner to the firm.
'This represents a significant step in the evolution of TwentyFour, providing a one-off opportunity to achieve our goals and vision, without compromising on our boutique approach and culture. We will continue to focus on delivering strong investment performance to our clients.'
The transaction, which remains subject to regulatory approval, will be financed out of Vontobel’s own funds and is expected to be accretive for Vontobel in the first year with no significant integration costs.