Navigator targets six asset managers
Navigator Global Investments is to acquire six investments from funds managed by Neuberger Berman subsidiary Dyal Capital Partners.
In an announcement to the Australian Securities Exchange (ASX), the firm said it would acquire six minority ownership interests in alternative asset managers from investments managed by Dyal.
The six firms were Bardin Hill Investment Partners, Capstone Investment Advisors, CFM, MKP Capital Management, Pinnacle Asset Management and Waterfall Asset Management.
Collectively, the firms managed US $35 billion ($48 billion) in assets under management across 26 strategies.
It was expected to close between December 2020 and January 2021, subject to regulatory and shareholder approval.
Navigator said the deal was “expected to be immediately cash EPS accretive, support the maintenance of the current dividend payout ratio policy and preserve the company’s strong balance sheet to enable additional organic and inorganic growth opportunities”.
Michael Shepherd, chairman of Navigator, said: “We believe this is a compelling transaction with strong commercial logic. The acquisition is an important development in the evolution of Navigator. We have long targeted high-quality opportunities to grow and diversify our holdings to generate strong long-term shareholder returns”.
The deal was structured in two parts, one at closing and one following 2025. At closing, Navigator would be entitled to receive $17 million of cash distributions annually plus 20% of any excess cash distributions. In exchange, Navigator would issue the Dyal funds a 40% economic interest at closing through the issuance of ordinary shares and convertible notes.
Following 2025, Navigator would acquire the remainder of Dyal’s funds interest in the cash distributions for a single redemption payment linked to financial performance over the time.
AUTHOR
Laura Dew
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
