Boutique asset manager City Financial is targeting two multi-manager firms as it looks to expand its business through further acquisitions.
Speaking exclusively to IFAonline's sister title Investment Week, CEO Andrew Williams (pictured) said he has placed a bid for one firm, and also intends to complete a second deal by the end of this year.
Consolidation in the industry following the Retail Distribution Review (RDR) has presented opportunities for M&A-driven businesses, he said.
“Post-RDR, people are reviewing their propositions so there are opportunities, especially if some funds are sub-scale or do not fit clients’ requirements,” Williams said.
“Both targets are a decent size, and both cases are parts of the business that no longer fit the strategic objective of their owner. They fit mine because they would allow [multi-asset fund manager] Mark Harris to have more assets under management.”
He added the deals would benefit clients by way of reduced TERs on the larger funds.
Meanwhile, the group has hired a second manager for the Defensive Global Bond fund, managed by Graham Glass, after the fund’s assets hit £100m.
Phillip Lee joined the firm on 1 November as a global fixed income manager from Asset Risk Consultants.
City Financial has a team of three focusing on finding new ideas for the acquisition-led business.
The group has completed 11 acquisitions since 2006 and is celebrating one year since it acquired Eden Financial and PCE Investors last October.
For the full interview with Andrew Williams, click here.
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