Schroders plc (LON:SDR) (LON:SDRC), one of the largest and oldest investment firms based in London, is in talks with Cazenove Capital for a possible takeover. Cazenove Capital manages only a shred compared to Schroders’ large asset base and the acquisition will increase Schroders’ worth by less than 10 percent. Cazenove Capital, established in 1823, manages $28.5 billion while Schroders plc (LON:SDR) (LON:SDRC) manages $344.5 billion.
Cazenove has until April 19 to make a decision on the terms of the acquisition. Schroders plc (LON:SDR) (LON:SDRC) will possibly pump out 500 to 600 million pounds for the buyout. Cazenove trades at 3 percent of its asset base. Schroders is not known for making any considerable acquisitions so this is marking a new trend for the asset manager.
ValueWalk's Raul Panganiban with Maurits Pot, Founder and CEO of Dawn Global. Before this he was Partner at Kingsway Capital, a frontier market specialist with over 2 billion AUM. In the interview, we discuss his approach to investing and why investors should look into frontier and emerging markets. Q2 2021 hedge fund letters, conferences and Read More
Last year, Schroders bought STW Fixed Income Management, which is based in the U.S.
Both firms follow similar strategies and provide matching investment products. The Telegraph is reporting that analyst firms are advising clients to refrain from putting more money into either firm. Financial advisers have also issued warnings that if the takeover happens, Schroders plc (LON:SDR) (LON:SDRC) and Cazenove will be given a downgraded rating, which is standard in such events.
Cazenove UKAbsolute Target Fund managed by Steven Cordell and Julie Dean is up 2.1 percent YTD for February. Cazenove European Fund managed by Chris Rice with more than $1 billion in AUM, was up 9.9 percent as of the end of Feb. The Cazenove UK Equity Fund, managed by Julie Dean, has gained 9.6 percent while Cazenove Absolute UK Dynamic Fund is up 1.2 percent in the same period.
Cazenove manages money through several investment funds with assets ranging from as low as 50 million to more than 900 million pounds.