Perpetual’s Pendal takeover shoots for best of both worlds

How would the hundreds of hard-nosed fund managers spread across these two organisations assess this deal?They’d start with price, of course.

The next thing fundies would look at is the synergies in the deal, which are estimated at $60 million a year. That’s about 8 per cent of the combined asset management cost base across the two businesses, and Perpetual chief executive Rob Adams suggests further savings are possible. “For both firms and for many firms in the industry, we’re wrestling with two competing issues,” he says. “One is that alpha generation is best delivered in a boutique nature, which tends towards small.“And yet fee pressure, and the need for scale-based investments in everything from digital distribution to data and analytics, requires industrial size.

“The role of a salesperson is still important, but, you know, when they walk in, our clients have heard of us through advertising, they’ve read articles we’ve written on LinkedIn, they’ve probably gone to a website to investigate and understand what they’re investing in.

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Deal on: Perpetual, Pendal ready to tie the knotTwo fierce rivals of Australia’s funds management, Perpetual and Pendal Group, are going to have to bury the hatchet.
Source: FinancialReview - 🏆 2. / 90 Read more »

Perpetual buys Pendal, creating $201b asset managerInvestment firm Perpetual has agreed to buy rival Pendal after long-running talks finally ended in an agreement to create a $201 billion global asset manager.
Source: FinancialReview - 🏆 2. / 90 Read more »

Perpetual buys Pendal, creating $201b asset managerInvestment firm Perpetual has agreed to buy rival Pendal after long-running talks finally ended in an agreement to create a $201 billion global asset manager.
Source: FinancialReview - 🏆 2. / 90 Read more »

Qantas plots $400m buyback; Perpetual to acquire PendalWATCH LIVE: Qantas earnings briefing; Whitehaven $1.95b record profit; Appen swings to half-year loss, warns on guidance; Charter Hall forecasts 6pc dividend growth; Eagers declares record interim dividend; Follow for updates.
Source: FinancialReview - 🏆 2. / 90 Read more »

BoA spearheads Perpetual’s new debt packageBank of America and three other lenders are set to bankroll the bulked-up Perpetual Ltd.
Source: FinancialReview - 🏆 2. / 90 Read more »

British Open champion Cameron Smith to headline Australian Open fieldThe world No.2 has confirmed he will play the country’s two biggest events during the summer, delivering a massive shot in the arm to the domestic summer.
Source: smh - 🏆 6. / 80 Read more »