The transaction will see Allianz GI pick up 100% of share capital from Old Mutual and RGP’s management and is expected to complete in the second quarter of 2016, subject to regulatory approval.
Fixed income has been a recent focus for Allianz GI, having built an Asian bonds team under David Tan, investing in its emerging market debt team, led by Greg Saichin and hiring M&G’s Mike Riddell in October 2015.
The group says this deal will build on those efforts while providing greater distribution potential for RGP’s funds.
As with previous integrations, Allianz GI plans to retain the existing investment team and process, adding the team to the global investment platform.
Franck Dixmier, Allianz GI’s global head of fixed income and a member of its global executive committee said: “As active managers, we share a common philosophy on generating alpha in difficult market conditions and look forward to realising the fruits of this exciting new enterprise.”
Global chief investment officer and chief executive-elect of Allianz GI Andreas Utermann said the complementary nature of the acquisition extends to both business’s geographic footprint, enhancing Allianz GI’s footprint in the UK as well as making RGP’s strategies available to more clients globally.”
He added: “The two businesses are a natural fit – in terms of both product mix and culture – and we really look forward to working together closely for our clients’ mutual interests.”
New partner needed
Olaf Rogge, founder, executive chairman and co-chief investment officer of RGP said: “We initiated the search for a new strategic partner back in 2015 with the support of our current majority owner, Old Mutual. Having had discussions with a number of interested parties, we are convinced that the combination with AllianzGI will be in the best interests of clients and will ensure the continued future growth of RGP’s successful investment approach.”
At 30 September 2015, Allianz GI’s assets under management were €427bn (£329bn) of which €167bn were in fixed income strategies. At 31 December 2015, RGP’s AUM – all of which sits in fixed income strategies – totalled €24.1bn.