Vontobel Asset Management has taken a 60% stake in London-based TwentyFour Asset Management as the Swiss firm begins its international expansion after being spun off from its parent last year.
Multi-boutique Vontobel AM is the investment arm of the Swiss bank of the same name, which spun off the business into a separate entity in December to increase its international competitiveness.
It has now boosted its UK presence by taking a majority stake in TwentyFour AM, an independent fixed income manager with both an institutional and retail presence.
Vontobel said the all-cash deal strengthened its UK presence and added to its fixed income offerings, providing excellent opportunity to grow both companies.
Together, the pair now has £12bn (€16.3bn) in fixed income assets under management.
TwentyFour, created in 2008, will still be managed by its existing partners, who retain full authority over investment decisions, as the brand also remains untouched.
The founders, partners and key staff, Vontobel said, retain the remaining 40% share of the company, although this will gradually be passed over to the Swiss firm.
Head of Vontobel AM Axel Schwarzer said: “The acquisition will set a strong foundation for Vontobel Asset Management’s further growth in the UK, which is one of the most important asset management markets.”
Mark Holman, chief executive at TwentyFour, added: “This represents a significant step in the evolution of TwentyFour, providing a one-off opportunity to achieve our goals and vision, without compromising on our boutique approach.”