RWC Partners is set to acquire European equities money manager Pensato Capital.
Financial terms of the deal were not disclosed, but a spokesman for RWC said the they depend on Pensato's investment team achieving "reasonable revenue objectives." The deal is expected to be completed in late August or early September.
The long/short and long-only European equities firm has about $280 million in assets under management. RWC runs about $11.2 billion across a small number of investment strategies, including convertible bonds and equities.
Pensato Capital is majority owned by Graham Clapp, managing partner, portfolio manager, who launched the firm in 2008. He will remain lead portfolio manager of the Pensato team at RWC. Edward Rumble, partner, portfolio manager; and Russell Champion, partner, assistant portfolio manager, will be co-portfolio managers. The investment team of seven people will move over to RWC. The spokesman added that Trygve Toraasen, partner, portfolio manager, will not move with the business as he will return to Stockholm for personal reasons.
Existing strategies run by Pensato Capital will be co-branded, said the spokesman.
"When I was introduced to (Dan Mannix, CEO at RWC) six months ago I was intrigued by the RWC business model," said Mr. Clapp in a news release Monday. "It is critical to me and my team that we spend our time analyzing companies and I really like the focus RWC has on creating the right environment for its investment teams."
Mr. Mannix added: "We believe that there remains a real demand for exceptional investment teams who are providing something different for investors and we see the competitive environment improving as barriers to entry rise and larger (organizations) increasingly put the squeeze on their investment teams."