TRANSACTION SUMMARY

On 10 May 2021, Pendal Group Limited (Pendal), an Australian-listed (ASX:PDL) and global active investment manager, announced that it has entered into an agreement to acquire 100% of Thompson, Siegel & Walmsley LLC (TSW), a highly-regarded US-based value-oriented investment manager, from BrightSphere Investment Group Inc (75.1%) and TSW management (24.9%) for US$320m.

The acquisition price represents 7.6x 1H21 EBITDA (annualised, excluding synergies) and is expected to be double digit EPS accretive in the first full year post completion.

The acquisition will deliver scale and diversification benefits for Pendal across investment capabilities, asset classes, geographies and distribution channels. TSW is highly complementary to Pendal’s business, with almost no overlap of investment strategies and clients.

Following the transaction, Pendal’s AUM will increase by 30% to A$132bn, of which 43% is in global and international equities and a further 33% in regional equities (Australian, Europe/UK, US and Asia/EM). The US will represent the largest region (44%) of the combined AUM followed by Australia (35%) and Europe/UK/Asia (21%).

PENDAL

Pendal is an independent global investment manager based in Australia and managing A$102bn in AUM (prior to the transaction) through J O Hambro UK, Europe & Asia; JOHCM USA; Pendal Australia and Regnan.

Listed on the Australian Stock Exchange since 2007 with A$2.7bn market cap, it operates a multi-boutique style business across a global marketplace with offices in Sydney, Melbourne, London, Prague, Singapore, New York, Boston and Berwyn.

TSW

Established in 1969 and headquartered in Richmond, Virginia, TSW operates primarily in long-only equity (US and International) with US$24bn of AUM. TSW has a solid base of institutional and sub-advisory relationships with solid flow momentum and high performing investment strategies.

Link was one of the founding members of the modern credit and collections industry in Europe and has been at the forefront of innovation ever since. Link’s proprietary operational platform allows its business to service a range of asset types from within and outside the financial services industry.

ROLE

SHP conducted an extensive search mandate for Pendal following which SHP acted as financial adviser on its acquisition of TSW.