REG - Impax Asset Mgmnt - Acquisition of fixed income assets

Impax Asset ManagementAnnouncement

10/07/2024 07:00

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RNS Number : 7506V  Impax Asset Management Group plc  10 July 2024

Impax Asset Management Group plc

 

("Impax" or the "Company")

 

 

Impax to acquire European-based high yield assets and expand fixed income team
in agreement with SKY Harbor Capital Management, LLC

 

London, 10 July 2024 - Impax Asset Management Group plc ("Impax" or the
"Company") announces today that it has entered into an agreement to acquire
the European assets of SKY Harbor Capital Management, LLC ("SKY Harbor"), a
fixed income manager, the completion of which is subject to certain closing
terms and conditions.

 

The acquisition marks an important step in Impax's strategy to expand its
fixed income business and follows Impax's agreement to acquire the assets of
Copenhagen-based Absalon Capital Management ("Absalon").

 

Founded in 2011 and based in Greenwich, CT, SKY Harbor is a specialist
investment firm focused on the management of fixed income corporate high yield
securities and leveraged loans for institutional investors, private wealth
advisers and multi-asset managers, with approximately US$4.2 billion in assets
under management (as of 30 June 2024). SKY Harbor was an early adopter of the
integration of sustainability risks and opportunities into its investment
process.

 

Impax has entered into an asset purchase agreement with SKY Harbor principally
with respect to the promotion, distribution and management of SKY Harbor's
European-based funds and mandates targeting short-duration high yield and
broad high yield ("HY") strategies (the "Strategies"), including the US Short
Duration Responsible HY strategy (launched in 2012), the Global Responsible HY
strategy (launched in 2012) and the Global Short Maturity Responsible HY
strategy (launched in 2018), which are distributed to clients and investors
outside of the United States. The Strategies are available via the three
sub-funds of a Luxembourg-based umbrella UCITS Fund (the "SKY Harbor UCITS
Fund") and via certain separately managed mandates. As at 30 June 2024 these
funds and mandates had in aggregate approximately £1.6 billion (US$2.0
billion) of assets under management and advice.

The sub-funds of the SKY Harbor UCITS Fund comply with the transparency
disclosure obligations under Article 8 of the European Union's Sustainable
Finance Disclosures Regulation (SFDR) and have been awarded the SRI Label as
defined by the French Ministry of the Economy and Finance.

The transaction also includes a share purchase agreement for Impax to acquire,
subject to relevant approvals, Frankfurt-based SKY Harbor Capital Management
GmbH, a regulated entity that is responsible for the cross-border distribution
of the Strategies to clients and investors outside the United States and is
the designated Principal Distributor of the SKY Harbor UCITS Fund.

Following the completion of the acquisition eight SKY Harbor team members
including senior executives who have managed and supported SKY Harbor's funds
and mandates since their inception will join Impax.

Upon completion of the acquisition, Impax will become the manager of the
separate mandates and the investment manager and distributor of the SKY Harbor
UCITS Fund and sub-funds, the names of which may be changed, subject to fund
shareholder and regulatory approval.

 

Post the completion of the SKY Harbor and Absalon acquisitions, Impax will
have total pro-forma fixed income assets under management and advice of
approximately £3.1 billion (US$4.0 billion) as of 30 June 2024. The Impax
fixed income investment team will include c.20 professionals, offering
strategies in US Core Bonds, US Core Plus Bonds, US High Yield, Global High
Yield, US Short Duration High Yield, Global Short Duration High Yield and
Emerging Market Corporate Debt.

 

Ian Simm, Founder and Chief Executive, Impax Asset Management commented:

 

"This transaction marks an important milestone in our strategy to expand
Impax's fixed income capabilities globally. Both founder-led specialist asset
managers, SKY Harbor and Impax share a strong business culture and a
complementary investment approach. The addition of SKY Harbor's deep expertise
and track record in high yield investing and its team's experience in client
service fit well with those brought by the Absalon team and will be a
significant asset as we broaden our fixed income offering. We are looking
forward to offering SKY Harbor and Impax clients alike a wider range of
investment solutions dedicated to investing in the opportunities and managing
the risks associated with the transition to a more sustainable economy."

 

Hannah Strasser, Co-founder and Chief Executive, SKY Harbor commented:

 

"We believe this transaction with Impax creates a strong value proposition for
global clients and investors outside the US who can look forward to continuing
to invest in SKY Harbor's high yield Responsible Investment Strategies. Those
clients and investors will be well supported by the talented and highly
committed team of professionals who will join Impax post-closing and will most
certainly also benefit from Impax's thought leadership, stewardship, and
engagement efforts in the field of sustainable investing."

 

 

- Ends -

Enquiries:

 

 Impax Asset Management Group plc

 Ian Simm, Chief Executive                              +44 (0)20 3912 3000

 Paul French, Head of Communications                    +44 (0)20 3912 3032

 Montfort Communications

 Gay Collins                                            +44 (0)77 9862 6282

 Jack Roddan                                            +44 (0)78 2567 0695

 impax@montfort.london (mailto:impax@montfort.london)

 Peel Hunt LLP, Nominated Adviser and Joint Broker

 Andrew Buchanan                                        +44 (0)20 7418 8900

 Dan Webster

 Berenberg, Joint Broker

 James Felix                                            +44 (0)20 3207 7800

 Dan Gee-Summons

 

About Impax Asset Management

 

Founded in 1998, Impax is a specialist asset manager, with approximately
£36.9 billion as of 30 June 2024 in both listed and private markets
strategies, investing in the opportunities arising from the transition to a
more sustainable global economy.

 

Impax believes that capital markets will be shaped profoundly by global
sustainability challenges, including climate change, pollution and essential
investments in human capital, infrastructure and resource efficiency. These
trends will drive growth for well-positioned companies and create risks for
those unable or unwilling to adapt.

 

The company seeks to invest in higher quality companies with strong business
models that demonstrate sound management of risk. Impax offers a well-rounded
suite of investment solutions spanning multiple asset classes seeking superior
risk-adjusted returns over the medium to long term.

 

Impax has approximately 300 employees(1) across its offices in the United
Kingdom, the United States, Ireland, Hong Kong and Japan making it one of the
investment management sector's largest investment teams dedicated to
sustainable development.

 

www.impaxam.com (http://www.impaxam.com)

 

(1) Full-time equivalent.

 

Issued in the UK by Impax Asset Management Group plc, whose shares are quoted
on the Alternative Investment Market of the London Stock Exchange.  Impax
Asset Management Group plc is registered in England & Wales, number
03262305.  AUM relates to Impax Asset Management Limited, Impax Asset
Management (AIFM) Limited, Impax Asset Management Ireland Limited and Impax
Asset Management LLC.  Impax Asset Management Limited and Impax Asset
Management (AIFM) Limited are authorised and regulated by the Financial
Conduct Authority and are wholly owned subsidiaries of Impax Asset Management
Group plc.  Please note that the information provided on www.impaxam.com
(http://www.impaxam.com/) and links from it should not be relied upon for
investment purposes.

 

Impax is trademark of Impax Asset Management Group Plc. Impax is a registered
trademark in the EU, US, Hong Kong and Australia. © Impax Asset Management
LLC, Impax Asset Management Limited and/or Impax Asset Management (Ireland)
Limited. All rights reserved.

 

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