U.K. alternative assets manager Schroders has agreed to buy the securitized products investment management team of Brookfield Investment Management, which oversees more than US$4 billion. No financial terms were disclosed for the deal, which is expected to close in the third quarter. As a result, the Brookfield team, which is led by Managing Director Michelle Russell-Dowe, will combine with Schroders’ fixed income operations in New York. The combined group will manage more than US$8 billion. Schroders said the acquisition “deepens our capabilities in one of the largest and most research intensive credit sectors globally.”
Schroders expands securitized credit capability through acquisition of ABS and MBS team from Brookfield
NEW YORK, May 16, 2016 /PRNewswire/ — Schroders has reached an agreement with Brookfield Investment Management Inc. to acquire its securitized products investment management team with more than $4 billion in assets under management.
The team is led by Michelle Russell-Dowe, Managing Director and Head of Securitized Products Investments at Brookfield, and will combine with Schroders’ existing New York based ABS team. The combined team will oversee more than $8 billion, with significant capacity for further growth.
The team also manages an Irish qualifying investor alternative investment fund (QIAIF), which will become an important component of the firm’s extension into alternative investments. These assets will be managed under the Schroders brand, with full access to the firm’s asset management platform, economists, research and risk management capabilities.
Karl Dasher CEO North America and Co-Head of Fixed Income at Schroders said:
“This acquisition deepens our capabilities in one of the largest and most research intensive credit sectors globally. The process developed by Michelle and her team over two decades has delivered one of the longest and strongest track records in the sector with an extensive network of industry relationships. This will strengthen our investment capability for both US and non-US investors seeking higher return opportunities within fixed income.”
Michelle Russell-Dowe Managing Director and Head of Securitized Products Investments at Brookfield said:
“Our team is very excited to become part of Schroders. We feel the organization, investment approach and environment will be a great fit for our team and our clients, which will benefit from the deep resources and capabilities Schroders has to offer globally. We look forward to working with Schroders to build on the exciting opportunities available in a changing fixed income landscape.”
Schroders has a diversified and expansive fixed income capability globally, which includes credit, multi-sector, rates, emerging market debt, municipals, convertibles, currencies and has now enhanced existing ABS and MBS capabilities. The Fixed Income team manages over $125 billion* in assets under management across the regions and is supported by an investment staff of over 150 individuals including portfolio management, research, analytics, risk and product and portfolio management.
Financial terms of the transaction were not disclosed and it is expected to complete in the third quarter of 2016.
*As of March 31, 2016
For further information, please contact:
Catherine Wooters of Prosek at 212-279-3115 x 287, firstname.lastname@example.org
Jennifer Manser of Schroders at 212-632-2947, email@example.com
About Schroder Investment Management North America Inc.
Schroder Investment Management North America Inc. is an indirect wholly-owned subsidiary of Schroders plc (SDR.L), a global asset management company with approximately $466.9 billion under management as of March 31, 2016. Schroder’s clients include major financial institutions including banks and insurance companies, as well as local and public authorities, public and private pension funds, endowments and foundations, intermediaries and advisors, as well as high net worth individuals and retail investors. The firm has built one of the largest networks of offices of any dedicated asset management company with more than 400 portfolio managers and analysts covering the world’s investment markets, offering a comprehensive range of products and services.
Further information about Schroders and access to our thought leadership and insights can be found at www.schroders.com/us.
Photo courtesy of Reuters/Toby Melville