Multi-boutique fund manager Treasury Group has announced plans to merge with US-based Northern Lights Capital Group, forming a new business with $49.6 billion in funds under management (FUM).
Northern Lights is a US-based multi-boutique asset management business with FUM of $24.3 across 13 funds management businesses.
According to a Treasury Group statement, there will be no change of control, with Treasury Group retaining a 61 per cent interest in the merged entity as well as majority board representation.
The merger is a $193 million deal and will see Treasury Group double its FUM to just under $50 billion through 21 associated funds management businesses.
The deal is expected to be materially earnings-per-share accretive to Treasury Group shareholders, and is on track to be completed in October 2014.
Treasury Group managing director Andrew McGill said, “We are delighted to join with Northern Lights, transforming both businesses into an international multi-boutique asset management group.
“For Treasury Group, the merger executes on key elements of our strategy, delivers significantly strengthened product distribution capability and leaves us ideally positioned for our next phase of growth across international markets,” said Mr McGill.
“Northern Lights and Treasury Group share very similar philosophies, with both organisations committed to providing creative capital and working diligently to grow portfolio companies,” said Northern Lights managing director Tim Carver.