Federated Investors will acquire Prime Rate Capital Management, a London-based provider of institutional liquidity products, from Matrix Group, confirmed Ed Costello, Federated spokesman.
Terms weren't disclosed.
The acquisition, expected to close during the first quarter, will give Federated its first office in London and add Prime Rate Capital's family of UCITS products — including sterling, euro and U.S. dollar liquidity funds — to Federated's investment lineup.
Prime Rate Capital's funds will add a combined £1.5 billion ($2.4 billion) to Federated's assets under management, lifting the Pittsburgh-based firm's offshore assets to around $9 billion, confirmed Mr. Costello.
As of Sept. 30, Federated's AUM came to $351.7 billion.
Federated will continue to seek “opportunities to expand our global business in Europe and around the world,” Gordon J. Ceresino, president of Federated International Management, a subsidiary that oversees Federated's non-U.S. operations, said in a news release.
No decision has been made on whether Prime Rate Capital will keep its name.