LiontrustAsset Management Plc said April 7 that it entered into aconditional agreement to acquire the European income fund management businessof Argonaut Capital PartnersLLP.
The total consideration for the acquisition will be anamount in cash equal to 1.5% of the AUM to be transferred, equivalent to about£4.5 million as of April 1. The consideration is limited such that the totalamount payable may not exceed 24.99% of Liontrust's market capitalization as ofthe date of completion of the deal.
The European income business includes the right to manage theFP Argonaut European Income Fund and the FP Argonaut European Enhanced IncomeFund. Liontrust Asset Management will launch the Liontrust European Income andLiontrust European Enhanced Income funds and merge the Argonaut funds into thetwo on completion of the purchase. Olly Russ, the investment manager of theArgonaut funds, will also manage the two new funds.
The acquisition is expected to increase Liontrust's AUM byapproximately £298 million. The deal is subject to relevant regulatoryapprovals and is expected to conclude in June, upon which Russ will joinLiontrust as head of European income.