Impax CEO Ian Simm (pictured) said the acquisition is 'an important step' in the 'continued enhancement' of the firm's fixed income offering.
Impax Asset Management’s Ireland subsidiary has agreed to acquire the assets of Danish bond boutique Absalon Corporate Credit for an undisclosed sum, as the firm continues to develop its fixed income franchise.
The boutique, which is owned by Copenhagen-based asset manager Formuepleje Group, manages around £351m (€405m) of assets for European institutional investors and Danish high-net-worth individuals.
Absalon runs two fixed income strategies in global high yield and emerging market corporate debt, launched in 2006 and 2010, respectively, and are available as both Luxembourg- and Danish-based funds.
The team was established by Klaus Blaabjerg, who, along with three portfolio management colleagues, will join Impax as part of the acquisition. Each team member brings more than 15 years' experience and the team has worked together for more than ten years, the firm said.
The Big Interview: Impax CEO on avoiding 'lazy' ESG acronym and doubling assets by 2030
Once the acquisition is completed, the Absalon portfolio managers will become part of Impax's fixed income team, reporting to Ross Pamphilon, who was appointed head of fixed income in October.
The US-based Impax fixed income team currently runs US investment grade and US high yield fixed income funds for North American investors. Following the acquisition, the combined global team will have pro forma fixed income assets of around £1.6bn, as of 31 December 2023.
After the transaction closes, Impax Irish subsidiary Impax Ireland will become the management company, investment manager and distributor of the former Absalon SICAV funds, which are intended to become part of Impax's Ireland-based UCITS range, subject to approval.
The firm also plans that Impax Ireland, acting through a newly established Danish branch, will become the sub-investment manager of the Danish funds, for which Formuepleje will continue to act as the management company and distributor.
Impax AM launches first Article 9 social equity strategy
"This is an important step in the continued enhancement of our fixed income offering, which we have identified as a strategic priority as we aim to provide a wider range of solutions to our clients who are seeking to allocate to the transition to a more sustainable economy," said Ian Simm, founder and CEO of Impax.
"The addition of this highly experienced team of credit managers, with a successful track record, will complement our existing fixed income capabilities, particularly in high yield. We value highly our 15-year relationship with Formuepleje, and we are delighted to use this opportunity to expand the partnership."
Blaabjerg, managing director at Absalon Corporate Credit, added: "We are excited by the opportunity to join the Impax team and leverage the firm's extensive resources dedicated to investing in the transition to a more sustainable economy.
"We look forward to building on our successful track record and continuing to maintain our successful relationship with the Formuepleje team."
Performance boosts AUM in Q1
In a trading update this morning (9 January), Impax AM reported a 4.6% jump in assets under management to a total of £39.1bn over the three months to 31 December 2023.
The greatest contributor to the AUM increase during the period was positive market performance from the firm's listed equities franchise, which added over £2.6bn, while total client outflows amounted to £988m.
"This quarter, after more than 12 months of market headwinds, the investment performance of our principal strategies has strengthened significantly, underpinning a 4.6% jump in assets under management," Simm said.
"Although asset allocation decisions at some of our wholesale clients have led to net outflows this quarter, we have retained all our material client accounts and added some significant new ones, particularly in Europe."
Former Wells Fargo AM head of fixed income EMEA resurfaces as Impax bond chief
Looking ahead, the chief executive said the firm has a "healthy pipeline" of potential new business and sees "encouraging signs" that the transition to a more sustainable economy is "accelerating in many areas".
"To capitalise on Impax's commercial opportunities we have recently seeded two new equity-oriented investment products and made material progress in the development of our fixed income franchise," he added.
