Jupiter snaps up UK’s largest asset manager for non-profits
Jupiter Fund Management has acquired CCLA – the UK’s largest investment manager for non-profit organisations – in a bid to expand its UK reach.
The deal, which values CCLA at £100m on a 100 per cent equity basis, will mark Jupiter’s entry into the non-profit investment arena.
The FTSE 250 firm will add CCLA’s £15.1bn in assets under management on behalf of charities, religious institutions and local authorities.
The takeover will be fully funded from Jupiter’s existing balance sheet cash, with no new debt or equity issuance and is expected to complete before the end of 2025, subject to regulatory approvals.
On the back of the acquisition, Jupiter is eying at least £16m a year in recurring cost savings as it seeks to streamline support functions following the takeover and incorporate CCLA’s technology to reduce duplication in systems.
The fund manager anticipates a near £17m in one-off integration costs over the next four years to enable these savings.
Jupiter to return capital to shareholders
The firm has laid out ambitions to reach a cost-income ratio of 70 per cent, meaning for every £1 of revenue earnt, it will only spend 70p, and said the acquisition will be “another step” towards delivery.
Jupiter also updated its capital allocation policy for the 2025 financial year with a plan to return 50 per cent of fee-related revenue to shareholders. The payouts will be made through a combination of special dividends and additional share buybacks.
CCLA’s existing investment management teams are expected to stay in place following the takeover with little disruption.
Matthew Beesley, chief executive Officer of Jupiter, said: “This Acquisition helps us to increase scale in our home market of the UK, where Jupiter is already a leading player, without any disruption to our existing clients.
“It opens up a new client segment for us, broadening our appeal to a range of charitable and religious institutions, both in the UK and internationally, while also allowing us to expand our existing presence in the UK Local Authority sector.”
Peter Hugh Smith, chief executive of CCLA, said: “We will now benefit from Jupiter’s technology and operational infrastructure, its broad range of investment capabilities and extensive global distribution footprint.”