Pavilion Asset Management has taken over the management of MGM Assurance's fund range on a five-year...
Pavilion Asset Management has taken over the management of MGM Assurance's fund range on a five-year initial contract for an undisclosed sum.
The deal also sees Pavilion moving up from Brighton and taking over MGM's London office. The two groups investment management teams will be merged, adding a further five analysts and fund managers to the Pavilion team, raising the number to 16.
Pavilion's chief investment officer, Alan Perkins, who is approaching retirement, will step down and be replaced by MGM's investment director, Gregor Logan, who will also take a seat on Pavilion's board.
The outsourcing arrangement, covering five funds, has lifted Pavilion's assets under management from £1.7bn to £3.1bn, but the MGM funds will retain their MGM branding.
Robert Drake, chief executive of Pavilion, said the move is part of the group's ongoing plan to expand its business, whether organically or through acquisition.
Pavilion's main push to achieve its targeted organic expansion will be the group's alternative asset sister company, Pavilion Capital, he added.
Pavilion Capital currently runs a number of offshore fund of funds and fund of hedge funds vehicles and is keen to become a larger hedge fund player.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till