Liongate Capital Management sells a major stake to US giant

 
Michael Bow
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LONDON based fund manager Liongate Capital Management has agreed to sell a 55 per cent majority stake to US money manager Principal Global Investors for an undisclosed sum, it was announced yesterday.

Liongate, a fund of hedge fund manager based in Mayfair, manages around $2bn (£1.33bn) in assets for large institutional investors and was set up in 2003 by former investment bankers Randall Dillard and Jeff Holland.

Dillard and Holland are selling a 55 per cent equity stake in the business for an undisclosed amount. Both will retain the other 45 per cent and continue to manage the firm’s strategy.

The tie-up with Principal is set to give Liongate greater scope to sell its funds to potential investors, while Principal stands to gain more exposure to alternative investment strategies to add to its core funds.

The investment is the second acquisition Principal has made in London since 2011. It took a 74 per cent stake in London-based equity manager Origin Asset Management in July 2011 for $66m.

“Principal gets what we want to do, and our personal chemistry is strong, so that is why we decided to work together,” Dillard said.

ADVISERS LIONGATE

FENCHURCH ADVISORY SERVICES

Liongate was advised by one of the leading asset management advisory firms, Fenchurch Advisory Partners, which recently advised Standard Life on its £84m acquisition of Newton’s Private Client business. Fenchurch is one of the leading dealmakers in the asset management space. It worked with Principal Global Investors on its 2011 purchase of Origin Asset Management. It also advised Insight Investment on its acquisition by BNY Mellon from Barclays for £235m in 2009 and was adviser to Rensburg Sheppards on the £412m offer by Investec.