ESG-focused Impax builds out fixed income offering with new fund acquisitions
Impax Asset Management announced today that it had acquired the European assets of SKY Harbor Capital Management for an undisclosed sum.
The ESG-focused asset manager said the deal marks “an important step” in its strategy to expand its fixed income business, following its deal to acquire the assets of Copenhagen-based Absalon earlier this year.
At the end of June,the funds acquired by Impax had in aggregate £1.6bn of assets under management (AUM).
After the acquisition, Impax will have a fixed income AUM of £3.1bn and 20 people on its fixed income team.
SKY Harbor, based in Connecticut, is a specialist investment firm focused on managing fixed income corporate high yield securities and leveraged loans for institutional investors, private wealth advisers and multi-asset managers.
Ian Simm, founder and chief executive of Impax said: “This transaction marks an important milestone in our strategy to expand Impax’s fixed income capabilities globally”.
“The addition of SKY Harbor’s deep expertise and track record in high yield investing and its team’s experience in client service fit well with those brought by the Absalon team and will be a significant asset as we broaden our fixed income offering,” he added.
In a separate announcement, Impax reported that its AUM was down 6.8 per cent over the quarter to £36.9bn at the end of June.
This was largely driven by outflows from equities, which amounted to £1.9bn over the three months. Negative market moves also wiped off £805m.
“Aggregate net flows for the quarter to 30 June remained negative and dominated by our wholesale channel, despite a notable easing of outflows from key parts of our European distribution structure,” Simm said.
“Following a busy period for our direct sales team, our pipeline of potential new business is healthy,” he added.
“We remain convinced that when sentiment recovers (perhaps falling interest rates will be a catalyst) Impax will benefit,” Peel Hunt analysts Stuart Duncan and Robert Sage said.
“Whilst disappointing, looking ahead, the pipeline of potential new business remains healthy as a result of a busy period for the direct sales team,” they added.