Responsible investment manager Alquity has taken its second major step towards creating a multi-billion dollar international investment management business through its acquisition of fund management group, VAM Funds.
In a statement on 23 October, it said The new company will bring advisers a platform offering with a broad suite of client options, combining VAM's access to exceptional fund managers, Driehaus Capital Management, atomos/WTW (formerly Willis Towers Watson) and Foresight, with Alquity's leading ESG and impact funds.
The strategic deal creates a rapidly scaled group with AUMA more than doubling to over $640m since the start of 2023, enhancing its ability to grow its funds and increase inflows from partnerships with advisers and intermediaries.
The strategic deal continues an exciting year for Alquity that sees a rapidly scaled group with AUMA more than doubling to over US$640 million since the start of 2023, enhancing its ability to grow its funds and increase inflows from partnerships with advisers and intermediaries.
The combined group will have deeper access to global market locations, with staff on the ground in the US, UK, mainland Europe, Africa, and Asia, as well as greater resources including enlarged operations, sales, and marketing teams.
The company aims to shake up the international advisory market ESG offering, tapping into the increasing global demand for sustainable investment strategies. Alongside VAM's existing outstanding investment managers, Alquity will build out its leading high-quality ESG and impact funds platform, incorporating Alquity funds alongside other high-quality sustainable and impact offerings.
VAM Funds' established platform of 400 international Independent Financial Advisers (IFAs) will gain access to the best of the best in both traditional asset managers and a dedicated ESG and impact platform. The first addition to the VAM platform will be Alquity's Indian Subcontinent Fund, which has a 5-star rating on Morningstar for performance and 5 Globes for sustainability.
The companies will remain as separate brands, with VAM Funds' clients maintaining access to the current full range of funds and services, including the distribution of funds from all the existing third parties.
Paul Robinson, founder & executive chairman of Alquity, said: "This strategic acquisition creates a fast growing, high-quality international investment management platform that offers the best of the best investment access for advisers alongside award winning service.
"We look forward to building on our relationships with exceptional fund managers, Driehaus Capital Management, atomos/WTW, and Foresight to continue to offer clients a broad choice of strong-performing investment options.
"This deal creates a new scaled company enabling us to accelerate our fund growth, attract more institutional investments, and broaden the quality offering to clients.
"As well as expanding VAM Funds' successful international multi-asset IFA business, over time we will also offer Alquity's high-quality ESG and impact funds, tapping into the increasing demand for sustainable investment products."
The acquisition follows the retirement of VAM Funds' chairman, Peter de Putron.
Peter de Putron, chairman of VAM Funds, said: "After 40 years in the financial services industry the time has come for me to retire. As part of my succession plan, I have sought out a team to take VAM on the next phase of its journey and I am delighted that Alquity will be that team."
Haig Bathgate CFA, head of investments, atomos, said: "We welcome the opportunity to build on our VAM Funds relationship with Alquity, to continue to offer our world-class innovative investment management products and services to their clients.
"In addition to our extensive in-house capability and global investment outlook, atomos has an exclusive partnership with WTW which provides expertise in portfolio construction, asset allocation, and selection of third-party managers. We also offer privileged access to the top five equity managers selected by WTW."
Alquity's acquisition of VAM Funds will see AUM rise to more than US$470m and its AUMA will increase to over US$640m. Revenue will increase from $1.76m to $7.68m.
This deal builds on Alquity's plan to expand its investor base. Last year, it formed a joint venture with US-based Spouting Rock Asset Management (Spouting Rock) and created a distribution platform to give US investors access to its world-class ESG and impact funds.
Prior to that, in 2021, Alquity formed a partnership with East Capital Group, as well as completing its capital raise with backing from the founders of Investible, Australia's leading seed stage investor, and from asset management pioneer Martin Gilbert.
