Impax expands fixed income offering with new fund acquisitions

Wednesday, July 10, 2024 8:07 AM

Ian Simm, Founder and CEO of Impax, said: “This transaction represents an important milestone in our strategy to expand Impax’s fixed income capabilities globally.”

Impax Asset Management today announced the acquisition of the European assets of SKY Harbor Capital Management for an undisclosed sum.

The ESG-focused asset manager said the deal was an “important step” in its strategy to expand its fixed income business, following an agreement earlier this year to acquire the assets of Copenhagen-based Absalon.

At the end of June, the funds taken over by Impax had total assets under management of £1.6 billion.

Following the acquisition, Impax will have fixed income assets of £3.1 billion and a 20-strong fixed income team.

SKY Harbor is a Connecticut-based specialty investment firm focused on managing corporate fixed income, high yield and leveraged loans for institutional investors, private wealth advisors and multi-asset managers.

Ian Simm, Founder and CEO of Impax, said: “This transaction represents 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, as well as his team’s client service experience, aligns perfectly with the Absalon team and will be a significant asset as we continue to expand our fixed income offering,” he added.

In a separate statement, Impax said assets under management fell 6.8% in the quarter to £36.9bn at the end of June.

This was largely due to capital outflows from equities, which amounted to £1.9bn in the three months. Negative market movements also wiped out £805m.

“Total net flows for the quarter ended June 30 remained negative and dominated by our wholesale channel, despite a noticeable softening in outflows from key parts of our European distribution structure,” Simm said.

“After a busy period for our direct sales team, we now have great opportunities to attract new customers,” he added.

“We believe that as sentiment improves (perhaps with falling interest rates as a catalyst), Impax will benefit,” said Peel Hunt analysts Stuart Duncan and Robert Sage.

“Looking ahead, while disappointing, the potential for new leads remains high, reflecting a busy period for the direct sales team,” they added.