MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, November 29, 2024 With a 2025 Deal, a $9B-AUMA AM Will Come to Gotham The team at a 29-year-old, $9.12-billion-AUMA (as of September 30), PE-backed ETF strategist in the Southeasts are preparing to buy an 18-year-old, $564.5-million-AUM, active equity fund firm in the Big Apple. Watch for the acquirer to make more acquisitions down the line, too.
"We expect to do more in the future," Drahzal tells MFWire via email: We are always exploring opportunities to expand and enhance our solutions to better support financial advisors. While we don't have specific acquisition plans to share at this time, our focus remains on identifying partnerships that align with our mission to deliver innovative goals-based solutions, technology, and capabilities that help advisors grow and serve their clients more effectively. We look forward to announcing more exciting updates in the months and years to come. The Horizon-Centre deal is expected to close in the first half of 2025. Drahzal declined to comment on the pricing and terms, but he confirmed that Horizon plans to buy a majority of Centre's assets and that Horizon did not use an investment bank on the deal. Ladner and Drahzal confirm that James Abate, founder and chief investment officer of Centre, is expected to stay on with Horizon's 75-person team after the deal, serving as managing director of fundamental equities. Drahzal and Ladner also confirm that the deal will bring Horizon its first New York office. Per Centre's most recent form ADV, filed last month, the fund firm has a team of three people. Drahzall also confirms that Centre's two mutual funds, the Centre American Select Equity Fund (first launched in December 2011) and the Centre Global Infrastructure Fund (first launched in January 2018) will keep their names (including the Centre branding) but become part of the Horizon Funds, a family that currently includes nine mutual funds. (Perhaps Horizon is expected to adopt the Centre funds, becoming their new investment advisor.) Ladner and Drahzal confirm that Abate will continue to serve as the PM for the Centre mutual funds and UCITS. Ladner describes Abate and his team as sharing Horizon's vision of offering "financial advisors solutions and portfolios that align with their clients' financial goals, backed by rigorous processes and a results-driven approach." Drahzal calls the Centre team "an outstanding cultural match" for Horizon. "We've been in discussions with the Centre team for some time, carefully considering all aspects to ensure the best possible outcome," Drahzal writes: We entered into an agreement to acquire Centre to enhance our investment management capabilities and provide financial advisors with additional solutions that align with our goals- based framework. Centre's active and research-intensive approach to fundamental security selection complements our existing strategies, and their expertise in managing risk and downside volatility will be a valuable addition to our team. "Centre brings a research-driven approach to fundamental security selection, which complements Horizon's strategic focus on delivering innovative, goals-based solutions," Drahzal writes. "Together, we'll be able to offer financial advisors and their clients even greater tools for navigating complex markets. As we move forward, we'll focus on integrating our operations and exploring ways to enhance our portfolio offerings and expand our market reach." "At Centre we've long promoted our active and research-intensive approach to fundamental security selection, which we believe can help deliver long-term results for investors through our focus on producing returns and managing risk and downside volatility," Abate states. "By joining Horizon, we’ll be part of a larger team enhancing our resources, and that shares our focus and commitment to building better portfolios. I'm excited for what we will accomplish together." Abate, a former U.S. Army captain, worked at PWC, Credit Suisse, and GAM Investments before founding Centre in 2006. He is an alumnus of St. John's University. Printed from: MFWire.com/story.asp?s=68228 Copyright 2024, InvestmentWires, Inc. All Rights Reserved |
