Vontobel has taken targeted steps in recent years to develop a diversified range of products for its clients. One of the main pillars was the acquisition of a majority stake in TwentyFour Asset Management LLP (TwentyFour), now a CHF 24.2bn specialist fixed income boutique.
After acquiring a 60% stake in TwentyFour in 2015, Vontobel had intended to acquire the remaining 40% in two tranches in 2021 and 2023. TwentyFour’s Partners and Vontobel have now agreed that Vontobel will acquire the remaining 40% in one tranche on 30 June 2021. TwentyFour and Vontobel are thus underscoring the very positive development of the partnership; by bringing the transaction forward it gives clients and investors clarity and ensures focus remains on delivering outstanding performance and client service for the long term.
TwentyFour will remain operationally independent and will continue to service its clients from offices in London and New York, as well as via Vontobel’s international network. Since the acquisition of the majority stake of 60% in 2015, all TwentyFour Partners have continued to play an active role in the company’s day-to-day operations. The partners and portfolio management teams remain committed to serving the interests of clients and ensuring the investment boutique’s ongoing success, hence will continue to serve as a driver of growth for Vontobel.
Since Vontobel acquired a stake in the business (2015), TwentyFour’s advised client assets have increased from CHF 6.4 billion to CHF 24.2 billion (as of December 31, 2020).
Both parties have agreed not to disclose the purchase price. The acquisition of this stake will be fully financed out of Vont obel’s own funds. Part of the transaction will be paid in the form of Vontobel shares, further underscoring the commitment of TwentyFour’s Partners. All other things remaining equal, the transaction will have an effect of -200 bps on the CET1 capital ratio and will increase the return on equity by 200 bps.
TwentyFour was founded in 2008 as a partnership, and has since grown to employ around 75 staff, responsible for providing a broad range of fixed income products to institutional investors. TwentyFour is known for its disciplined investment philosophy and its proven investment process that generates sustained attractive risk-adjusted returns. TwentyFour’s funds have been rated by Morningstar, which has assigned 99% of them (asset weighted) a four- or five-star rating. Furthermore, the quality of its products has been recognized by a variety of industry awards.
“From the very beginning, we have been impressed by TwentyFour’s expertise and entrepreneurial culture, as well as its continuous growth. The acquisition of the remaining 40% stake is therefore the logical next step in our diversification and growth strategy. I look forward to our ongoing collaboration with our colleagues at TwentyFour, who are all supportive of this acquisition,” stated Zeno Staub, CEO Vontobel.
Mark Holman, CEO of TwentyFour, added: “After six years of working very closely together with Vontobel as a majority shareholder, the decision to move to full ownership was not a difficult one. As a direct consequence of our partnership we have been able to spread our investment expertise to a far greater audience as we have moved from being a domestic player to genuinely global. Importantly though we have preserved the independence and entrepreneurial spirit of being a boutique, which I know is something that both our clients and staff really value and was at the core of our decision making for this transaction.”