MGIM acquires Seneca Investment Managers to create £4.7bn AUM business

Ferdi van Heerden CEO of combined business

Ferdi van Heerden will become CEO of combined business

Momentum Global Investment Management (MGIM) is to acquire Seneca Investment Managers, creating a combined business with assets under management of £4.7bn and with offices in both London and Liverpool.

Following the transaction, the completion of which is subject to UK regulatory approval, the VT Seneca funds and the Seneca Global Income and Growth Trust managed by Seneca Investment Managers will combine with MGIM's three Focus funds and range of seven managed model portfolios to create a "comprehensive offering" for DFMs, advisers and clients.

MGIM said that the Seneca funds will assume the Momentum brand but will continue to follow Seneca's naming conventions.

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The acquisition will see the combined business maintain a presence in both London and Liverpool, where Seneca Investment Managers is headquartered, to ensure continuity of service for clients, a statement said.

No redundancies are expected as a result of the deal.

Ferdi van Heerden, CEO of MGIM (pictured), will become CEO of the newly-combined business, while David Thomas, CEO of Seneca Investment Managers, will become a non-executive on the board of the combined business.

Speaking to Investment Week, van Heerden said that was the "only change" on completion of the transaction and "for the rest, it's business as usual for staff".

Asked whether there would be further acquisitions from the combined business, he said that the "first focus is to grow the business organically", adding that they are "not aggressive acquirers".

"If it comes along we certainly will have a look at it. For now, we're really happy with the Seneca acquisition, and we will use that to amplify the organic initiatives that we have," he explained.

In a statement, van Heerden said: "The two teams complement each other well and have a strong cultural fit. The acquisition will enable MGIM to meet the growing demand for multi-asset investment solutions from advisers, discretionary fund managers and their clients."

Van Heerden added that the integration of the two companies will be "carefully managed through a phased approach", with the aim to look after the interests of existing investors, clients and employees of both companies.

David Thomas, chief executive of Seneca Investment Managers, said: "This deal adds value to all parties: it builds scale while maintaining the nimbleness and dynamism of a boutique; it strengthens the investment team; and it creates a comprehensive range of multi-asset funds and model portfolios, alongside our flagship investment trust client.

"Importantly, investors will enjoy ongoing support and servicing delivered by a larger client services team."

MGIM, the UK-based subsidiary of Momentum Metropolitan Holdings listed in Johannesburg, was established in the UK in 1998 and has approximately £4bn in AUM.

It provides specialist investment management services to institutional clients, financial advisers and their clients in the UK and Europe, Asia and the Middle East, South America and South Africa.

Boutique multi-asset value investment specialist Seneca Investment Managers was founded in 2002.