Liverpool’s Seneca bought by MGIM to create £5bn firm

Ferdi van Heerden and David Thomas

Momentum Global Investment Management Limited (MGIM), the UK-based subsidiary of Johannesburg-based Momentum Metropolitan Holdings Limited, said on Tuesday it will acquire Liverpool’s Seneca Investment Managers Limited (SIML).

Seneca was founded in 2002 and has over £600 million under management. 

MGIM has about £4 billion of assets under management.

The acquisition is subject to UK regulatory approvals.  

“This transaction significantly enhances the growth potential of the combined business, both in the UK and its other global markets, creating an entity with assets under management of £4.7 billion,” said Momentum.

“The business will maintain its presence in London and Liverpool to ensure that clients experience seamless continuity of service with the additional benefits of a stronger offering and broader capabilities.

“No redundancies are foreseen as a result of the transaction.

“MGIM and SIML are both successful multi-asset management businesses, with a shared philosophy of outcome-based investing and a history of close collaboration with financial advisers, discretionary fund managers (DFMs) and wealth managers since 1998 and 2002, respectively.

“The deal brings together SIML’s strong UK presence with MGIM’s global client base to offer products domiciled in the UK, Luxembourg and Guernsey.

“The transaction will combine the VT Seneca Funds and the Seneca Global Income & Growth Trust plc, managed by SIML, with MGIM’s three Focus Funds and range of seven managed model portfolios to create a comprehensive offering for financial advisers, DFMs and retail investors. The Seneca funds will assume the Momentum brand but will continue to follow SIML’s naming conventions.”

MGIM CEO Ferdi van Heerden said: “The two teams complement each other well and have a strong cultural fit.

“The acquisition will enable MGIM to meet the growing demand for multi-asset investment solutions from advisers, discretionary fund managers and their clients.

“The combined business, with offices in London and Liverpool, creates a strong foundation on which to accelerate our growth as an investment solutions provider to the UK adviser market and service our growing national client base.

“Personal service and engagement are at the core of both MGIM and SIML and will remain a primary focus of the combined business. 

“The integration of the two companies will therefore be carefully managed through a phased approach with the aim of carefully looking after the interests of the existing investors, supporting clients and employees of both MGIM and SIML.”

SENECA CEO David Thomas said: “MGIM is a partner that shares our ideals and outcome-based approach to investment: the fit is therefore very compelling and enables us to provide continuity and enhanced service to our clients, partners and investors.

“This deal adds value to all parties: it builds scale while maintaining the nimbleness and dynamism of a boutique; it strengthens the investment team; and it creates a comprehensive range of multi-asset funds and model portfolios, alongside our flagship investment trust client. 

“Importantly, investors will enjoy ongoing support and servicing delivered by a larger client services team.  In addition, given the significant growth prospects for the combined business, the future opportunities for all employees are considerably enhanced.”