Henderson Group significantly increased its global footprint with two acquisitions and an increase in ownership of Australia-based businesses, the firm said Tuesday.
The money manager has agreed to acquire 100% of Perennial Fixed Interest Partners Pty. Ltd., a fixed-income firm with A$8.1 billion ($6.2 billion) in assets under management, and Perennial Growth Management Pty. Ltd., which manages A$2.6 billion in equities. Both firms are based in Melbourne, Australia.
Both firms were acquired from Australian financial services firm IOOF Holdings Ltd., and from employees of the firms.
In a separate deal, Henderson, which is based in London, acquired the remaining 59% stake in 90 West Asset Management Pty Ltd., a global natural resources manager with A$300 million in AUM. A Henderson spokeswoman said the firm purchased a 41% stake in the business in April 2013. The remaining share was acquired from employees of the business.
Henderson said Perennial's expertise in fixed income and equities will significantly extend Henderson's offerings to Australian clients, Henderson said in a statement announcing the acquisitions.
IOOF will receive an upfront payment and deferred payments, which are dependent on future business performance, payable after two and four years, Henderson said the statement. The dollar amounts of the payments were not disclosed.
Employee shareholders of all three businesses will receive “a significant majority of their consideration through deferred earnout structures to be paid four years post completion,” said the same statement. Key investment professionals in all three businesses have signed long-term employment contracts with Henderson.
The deals will be funded from existing Henderson cash resources. The spokeswoman said further deal terms were not disclosed.
The Perennial deal is expected to close in the fourth quarter. The 90 West transaction closed May 29.
“Developing our presence in Australia is a strategic priority for Henderson,” said Andrew Formica, CEO of Henderson, in the statement. “These acquisitions will give us recognized domestic investment management capabilities to complement our global offering and take us into the top 30 of Australian asset managers. They help us build scale in our Australian business well ahead of our previous expectations.”