Specialist sustainability asset manager Impax is to acquire the assets (approximately €405m) of Absalon Corporate Credit, a fixed income manager serving European institutional investors and Danish high net-worth individuals.
Impax is primarily a listed equities investor but also has private market strategies and has been looking to expand its fixed income offering, which currently comprises US strategies distributed to investors in North America.
Absalon is part of the Formuepleje Group, which is based in Copenhagen and is an existing client and distribution partner of Impax.
The Absalon team manages two fixed income strategies, in global high yield and emerging market corporate debt. It was established by Klaus Blaabjerg, who, along with three portfolio management colleagues, is joining Impax as part of the acquisition.
Following completion of the acquisition, the Absalon portfolio managers (pictured) will become part of Impax’s growing fixed income team, reporting to Ross Pamphilon, who in October 2023 was appointed Impax’s head of fixed income.
The existing Impax fixed income team, which is based in the US, currently runs US investment grade and US high yield fixed income funds.
After the Absalon acquisition, the combined Impax global team will have pro forma fixed income assets under management and advice of approximately £1.6bn (€1.8bn) as of 31 December 2023.
“This is an important step in the continued enhancement of our fixed income offering, which we have identified as a strategic priority as we aim to provide a wider range of solutions to our clients who are seeking to allocate to the transition to a more sustainable economy,” said Ian Simm, founder and chief executive officer of Impax.
“The addition of this highly experienced team of credit managers, with a successful track record, will complement our existing fixed income capabilities, particularly in high yield,” he added.
The Absalon strategies have been available as Luxembourg-based SICAV funds and as Danish-based funds. The plan is for Impax to be the management company, investment manager and distributor of the former Absalon SICAV Funds, and sub-investment manager of the Danish funds.
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