Asset management firm Resolute Investment Managers, the parent company of American Beacon Advisors, is in exclusive talks to buy two UK-based multi-asset boutiques ahead of a planned launch in the country.
Resolute chief executive Gene Needles visited the UK last month to meet with the boutiques, which he declined to name.
He said the firms were looking to break into the US, something Resolute could facilitate through its subadvised fund model.
For example, last year Resolute teamed up with UK fixed income boutique TwentyFour Asset Management to launch the American Beacon TwentyFour Strategic Income fund in the US.
‘It’s a partnership. It could be that these firms have underperformed recently as they’re not in the US, and we can help with that,' he said.
‘The asset management business is changing rapidly as more look for strategic partners. Firms look to partner with us because of our ability to get products off the ground quickly.’
Needles said the move would also mean Resolute would start offering funds in the UK, for the first time, within in the next one to two years.
Needles added that when assessing potential acquisitions, Resolute was looking for firms that want to grow organically.
‘All of our M&A activity is in firms early on in their growth phase,' he said. 'But with some of the headwinds facing asset managers, they need help to grow and they are the firms we triangulate on.’
To read more on how Needles picks subadvisors and acquisition targets, click here.