Investment management firm Conning ($120 billion) is acquiring a 45% stake in emerging and frontier market specialist investment manager Global Evolution ($6.6 billion).
“We are very pleased to welcome Conning as a new shareholder in Global Evolution. This is a significant milestone in our firm’s development—one that recognizes the strength of our business and emphasizes our reputation as a leader in emerging and frontier markets,” Global Evolution CEO Søren Rump said in a statement. “Conning is the ideal strategic partner and has made a significant commitment of resources, including enhanced global distribution and capital, that accelerates our growth and enhances the experience for our clients.”
The transaction is expected to close in early 2018, subject to customary regulatory approvals and closing conditions. Following the closing, Global Evolution will continue to operate as an independent entity. In addition, founders Rump and Morten Bugge will continue their respective CEO and CIO roles, while employees will still hold a majority interest in the firm. Coning’s position in Global Evolution will increase over time through a series of staged investments aimed at providing total stability for the business as well as continuity in client service and performance.
“This transaction is beneficial to our clients, employees, and business. With the support of Conning’s resources, Global Evolution is well-positioned to accelerate innovation in emerging and frontier market investing,” Bugge said in a statement. “This transaction ensures that the investment team can focus on what is most important, namely delivering high-quality emerging and frontier market products to investors.”
Magnusson Denmark Advokatpartnerselskab served as the legal advisor to Conning, while Global Evolution had Spencer House Partners LLP and Kromann Reumert serve as financial and legal advisors, respectively.