Kestrel sells its multi-asset business to Merian Global Investors

Kestrel Investment Partners¹ today announces that it has signed an agreement to sell its top-performing multi-asset business to Merian Global Investors (MGI).

As part of the deal, which is expected to complete in December 2019 (subject to regulatory and shareholder approval), management of the $151 million² Kestrel Global Portfolio will transfer to MGI, as will the associated intellectual property and the entire Kestrel multi-asset team, including head of desk and lead fund manager John Ricciardi.

Kestrel launched its multi-asset business in 2011 under the leadership of John Ricciardi since when the team has built an outstanding long-term track record, with the Kestrel Global Portfolio (I USD) delivering a compound annual return of 6.2%, compared to 2.4% for the peer index since inception³.

Following the sale of its multi-asset business, Kestrel will be solely focused on managing and building its UK small cap equity franchise where it currently has total Assets under Management of c.£250 million. Kestrel operates three investment mandates within its small cap strategy serving institutional, family office and high net worth individual clients.

Kestrel remains under the leadership of its original founders, Ari Zaphiriou-Zarifi (Chairman), Max Royde, (CEO) and Oliver Scott, whilst Stuart Rollason continues to lead the Kestrel Inheritance Tax Solution (KITS).

Ari Zaphiriou-Zarifi, chairman of Kestrel Partners commented:

This is a great outcome for Kestrel as well as John Ricciardi and his team.

Having launched Kestrel’s global asset allocation business in 2011, John has consistently delivered outstanding returns and now is the right time for the business to move to a larger platform where it can capitalise on the success achieved under Kestrel’s ownership. We wish John and his team all the best for a successful future with Merian Global Investors.

The sale allows Kestrel to focus solely on managing and building its UK small cap equity franchise where we believe there is great potential for delivering strong capital returns over the medium to long term.

John Ricciardi adds:

Merian Global Investors is an ideal home for our ambitious team. It is an incredibly well-respected asset manager with a reputation for innovation and a positive, entrepreneurial culture. The support of MGI’s talented distribution and operational teams will allow us to develop and grow our strategy, while its commitment to having “no house style” will afford us the freedom to manage our products with the flexibility that’s resulted in long-term outperformance for our investors.

We’ve achieved a huge amount since launching our global asset allocation business in 2011under Kestrel’s ownership. However, now is the right time for the business to move on. We wish our colleagues and friends at Kestrel all the best for the future.

Mark Gregory, CEO, Merian Global Investors, comments:

For some time we’ve been looking to selectively expand our investment proposition, aligned with client demand for differentiated, high-alpha active strategies that offer genuine portfolio diversification. The Kestrel multi-asset team’s proven process is hugely compelling and I’m delighted that we’ve signed an agreement to secure its best-in-class business.

John and his colleagues are hugely experienced and have a fantastic track record. With the backing of our strong distribution presence and the launch of a new long/short strategy, we’re confident that we will be able to grow the team’s assets under management. I look forward to welcoming them to the business at the end of the year.

ENDS

Notes to editors:

¹ Kestrel Investment Partners is the trading name of an entity made up of two partnerships: Kestrel Partners LLP and Kestrel Investment Partners LLP.

² As at 30 September 2019

³ Source: Kestrel Global Portfolio, I USD share class versus Morningstar USD Flexible Allocation Index, since April 2012. As at 30 September 2019