Henderson takes Perennial funds
In what represents a significant change to the Australian funds management landscape, British-based Henderson Group has acquired Perennial key funds management products from IOOF.
The company announced it had agreed to acquire 100 per cent of Perennial Fixed Interest Partners Pty Ltd (“PFI”) and Perennial Growth Management Pty Ltd (“PGM”) from IOOF Holdings Ltd and the employee-shareholders of each company.
The announcement to the Australian Securities Exchange (ASX) said the two companies had combined Assets Under Management (AUM) of $10.7 billion.
At the same time, Henderson announced that it had increased its ownership of 90 West Asset Management Pty Ltd from 41 per cent to 100 per cent.
The Henderson announcement said the acquisitions served to accelerate its strategy to grow and globalise its business with Perennial’s fixed income and equities expertise significantly extending Henderson’s offering to Australian clients.
As part of the Perennial transactions, IOOF receives an upfront consideration and a deferred component dependent on future business performance, payable after two and four years.
In all three businesses, the employee-shareholders will receive a significant majority of their consideration through deferred earn-out structures to be paid four years post completion, with the quantum dependent on future business performance. Key investment professionals in all businesses have signed long term employment contracts with Henderson.
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