Janus Henderson responds to client demand with 2 acquisitions

Janus Henderson ETF emerging markets M&A acquisition

6 May 2024
| By Laura Dew |
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Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.

The firm, which delisted from the ASX last year, announced its quarterly results for the three months to 31 March which included two pieces of M&A.

First, it has entered into a strategic partnership with NBK Wealth, the wealth management arm of the National Bank of Kuwait Group. Its private investment arm will now form Janus Henderson’s new emerging market private capital division.

“Janus Henderson believes emerging markets remain underpenetrated for private capital solutions and therefore present a key strategic growth area. The company expects that partnering with NBK Wealth will provide Janus Henderson with the opportunity to tap into this rapidly expanding market where there is increasing appetite from both sovereigns and corporates.”

Secondly, it has acquired European ETF provider Tabula Investment Management which has a focus on fixed income and sustainable investment solutions. The provider was established in 2018, and Janus Henderson said it expects the acquisition will build on its existing active ETF business in the US.

Partnering with Tabula “will enable the company to respond to client demand globally for its investment strategies to include an ETF wrapper”, it said.

Commenting on the two deals, Janus Henderson chief executive Ali Dibadj, said: “These transactions represent strategic steps amplify existing strengths and diversify where clients give us the right to win. The M&A pipeline remains active, and these bolt-on acquisitions reflect only the beginning of what we believe will be several future partnerships to meet our clients’ needs and support the growth of Janus Henderson.

“While there is still work to be done, we have several areas of momentum in our business and the progress is tangible. Our focus remains on positioning Janus Henderson to deliver superior outcomes for our clients, employees, shareholders and other stakeholders.”

Financial terms for the two deals were not disclosed, and both are expected to be completed in the second quarter of 2024.

Looking at the firm’s results more broadly, assets under management increased by 5 per cent on the previous quarter to US$352.6 billion ($535 billion).

The largest volume of AUM was seen in its equities range which increased from US$205 billion at the end of 2023 to $222 billion, while multi-asset AUM increased from US$48.9 billion to US$51.1 billion. Fixed income and alternatives both declined slightly by 1.2 per cent and 8.5 per cent respectively to US$70.6 billion and US$8.6 billion.

Operating income was US$119.2 million compared to US$143 million in the previous income.

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