Australian Ethical boosts FUM with Altius acquisition
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The news: Australian Ethical Investment has agreed to buy fixed income fund manager Altius Asset Management from Australian Unity, boosting its funds under management (FUM) by around $2 billion.
The numbers: Australian Ethical said that once completed, the acquisition will see the investment management company grow its FUM by 19% from $10.3 billion to around $12.3 billion.
Sydney-based Australian Ethical will pay Australian Unity $4.25 million in cash upon completion of the deal, with an additional $1.25 million payable after completion. The latter sum is contingent on Australian Unity meeting certain transition steps and maintaining agreed FUM targets.
Australian Ethical said the transaction will be earnings-per-share accretive and is expected to generate around $1 million of EBITDA in FY25.
The context: The combined Australian Ethical and Altius fixed income capability will result in a sustainable fixed income team of seven, an expanded bond fund portfolio, and Australian Unity becoming one of Australian Ethical's largest institutional clients.
The transaction also includes an ongoing commitment by Australian Ethical and Australian Unity to work together and partner on further co-investment and product development opportunities.
What they said: Australian Ethical CEO John McMurdo said: "The acquisition of leading fixed-income fund manager Altius is another important milestone for Australian Ethical as we scale and broaden our investment capability consistent with out strategy and ethical charter."
Altius co-founder and chief investment officer Bill Bovingdon said: "We are excited by the opportunity to join Australian Ethical, the market-leading ethical investment platform, and to combine Altius' deep expertise in responsible fixed income with Australian Ethical's ethical investing heritage across asset classes".
"Naturally, clients will be at the centre of our considerations as we work closely with Australian Unity on a successful transfer of funds," he said.
The source: ASX announcement
