Impax Asset Management has entered into an agreement to acquire the corporate credit assets from fixed income manager Absalon Corporate Credit, part of Formuepleje Group.
The deal is subject to closing conditions. The sum has not been disclosed.
Copenhagen-based Absalon serves European institutional investors and Danish high net worth individuals. It has approximately £351 million in assets under management and manages two strategies: global high yield, launched in 2006, and emerging market corporate debt, launched in 2010.
Following completion of the deal, Impax – which has an existing client and distribution relationship with Formuepleje Group – will see Absalon’s portfolio managers become part of its fixed income team, led by Ross Pamphilon as of October 2023.
“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,” said Ian Simm, founder and chief executive of Impax.
“We value highly our 15-year relationship with Formuepleje, and we are delighted to use this opportunity to expand the partnership.”
Impax’s existing fixed income team is based in the US and runs strategies across investment grade and US high yield.
Upon completion, Impax’s newly combined global team will have pro-forma fixed income assets under management and advice of £1.6 billion.
“We believe that the credit markets are inefficient, which leaves many attractive opportunities for disciplined investors,” said Klaus Blaabjerg, managing director, Absalon Corporate Credit.
“We will continue to exploit these inefficiencies by actively selecting undervalued credits with high spreads relative to credit quality and default risk. We look forward to building on our successful track record and continuing to maintain our successful relationship with the Formuepleje team.”