Momentum Global Investment Management Limited (MGIM), the UK-based subsidiary of Momentum Metropolitan Holdings, will acquire Seneca Investment Managers (SIM).
The completion of the acquisition is subject to UK regulatory approvals.
This deal will create a combined global business with assets under management of £4.7bn ($6.14bn, €5.12bn).
The financial terms of the deal were not disclosed.
The business will maintain its presence in London and Liverpool to ensure that clients experience seamless continuity of service and no redundancies are “foreseen as a result of the transaction”.
It will combine the VT Seneca Funds and the Seneca Global Income & Growth Trust plc, managed by SIM, 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 SIM’s naming conventions.
Ferdi van Heerden, chief executive of MGIM, said: “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… 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 SIM 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 SIM.”