Kepler’s Ellipsis AM set to acquire Rothschild AM convertible bond business

The transaction involves the transfer of two Rothschild portfolio managers, Cristina Jarrin and Mikael Dauvert, to Ellipsis.

Kepler Cheuvreux subsidiary Ellipsis Asset Management has moved to expand its capabilities in the convertible bond segment with the acquisition of Rothschild & Co’s business.

The transaction is subject to regulatory approval. As part of the deal two Rothschild portfolio managers – Cristina Jarrin and Mikael Dauvert – will move to Ellipsis AM.

Ellipsis AM’s convertible team currently comprises of four portfolio managers, with each one performing the role of trader alongside acting as portfolio manager.

“The transition will be carefully managed through close collaboration between Ellipsis AM and Edmond de Rothschild AM to ensure seamless service continuity for investors,” Kepler said in a statement confirming the transaction.

Convertible bonds are a hybrid of bonds and equities. After buying the bond, its new owner has the option to convert that into equity in that company in the future should they wish to do so.

It’s a cheaper way for companies to raise money as they don’t have to pay as much coupon due to the fact that they’re potentially having to give away equity at the end of that bond’s life.

Asset management subsidiary, Ellipsis, claims that following close of the acquisition it will be among the top five asset managers in Europe active in this space.

European agency broker Kepler moved to acquire Ellipsis from Exane in 2021. At the time of the transaction, the asset manager had €2.8 billion in assets under management, specialising in credit, volatility, and listed derivatives.

Two years after its integration, the asset manager has seen significant growth, with Kepler reporting a 30% growth to €3.2 billion in its assets under management for 2023.

«