Henderson buys $6.3bn US equity boutique

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Henderson Global Investors has strengthened its US business with the acquisition of Geneva Capital Management (GCM).

Henderson will pay an initial $130 million (£76 million) for GCM plus an additional $70 million linked to performance-related measures.

GCM, which was founded in 1987 and is based in Milwaukee, controls $6.3 billion in assets.

Henderson’s existing global US business has seen assets under management double since 2011. In May 2014 the fund group hit $10 billion for the first time in its history on the back of $1.4 billion in inflows.

Following the acquisition Henderson’s US business will account for nearly 15% of the group’s assets under management.

Henderson said GCM’s expertise in mid and small cap equities ‘fills an important capability gap’ for the firm.

It said the deal would double the number of US investment professionals at Henderson and offer the opportunity to roll out new retail products, while marketing its capabilities more actively to US institutions.

Henderson chief executive Andrew Formica (pictured) said: ‘Developing our presence in North America is a strategic priority for Henderson. The acquisition of Geneva is a major step towards achieving our growth ambitions as a global asset manager.

‘It will increase our assets under management in the US by over 50%, add investment management expertise in US equities and extend our US institutional client base.’

Amy Croen, co-founder and managing principal of GCM, added: ‘The team at Geneva is excited to join Henderson.

‘With the backing of a strong international partner who is very supportive of our existing investment strategy and platform, we look forward to taking our business to the next stage of its development.’