Pendal Group Limited (Pendal), parent company of J O Hambro Capital Management Limited (JOHCM), today announced that it has entered into an agreement to acquire 100% of Thompson, Siegel & Walmsley LLC (TSW), a US-based value investment manager, for US$320 million. 

Established in 1969 and headquartered in Richmond, Virginia, TSW operates primarily in long-only equities (US and International), with US$23.6 billion of assets under management*.  The deal will more than double assets under management by Pendal’s US business, which will increase from US$21.1 billion to US$44.7 billion**.  

Pendal Group CEO, Nick Good, said, “This is a compelling opportunity to acquire a highly successful complementary business, which will create immediate value and facilitate our growth opportunities in the US market. This acquisition significantly broadens the range of product solutions we can offer clients via an expanded distribution network. 

“TSW is a natural strategic and cultural fit with JOHCM and the broader Pendal business, particularly given our shared core belief in investment team autonomy. Both businesses have solid flow momentum and strong performing, high conviction investment strategies. TSW is also highly complementary to our business, with almost no overlap of investment strategies or clients.”

TSW is a highly regarded value-oriented investment manager, with a solid base of institutional and sub-advisory relationships and a track record of strong investment performance: four of the six funds where TSW is the sole sub-advisor are rated either 4 or 5 stars by Morningstar and are ranked first quartile in their peer group over three years***.  Its investment capability spans international value equities, US equities and fixed income.  

TSW has an experienced and stable staff of 74 employees including a long-tenured and talented investment team of 20, with deep bench strength across all strategies. The TSW team are fully supportive of the acquisition and are aligned with Pendal Group’s values, its ethos of investment autonomy and its growth aspirations. All TSW employees will join the Pendal Group and there are no staff reductions planned. TSW’s investment strategies will remain under the TSW brand. 

*As of March 31, 2021, AUM adjusted for the closure of a client account that occurred post March 31, 2021.

**AUM as of March 31, 2021. Includes assets managed by JOHCM and its wholly owned affiliates JOHCM (USA) Inc. and JOHCM (Singapore) Pte. Limited. All assets quoted in U.S. dollars.

***Source: Morningstar Direct as of March 31, 2021, institutional share classes only.

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