Key Takeaways
- • SPARX Asset Management agreed to combine with PMA Capital Management of Hong Kong, creating what the companies describe as Asia's largest alternative investment firm with more than USD 8 billion (approximately YEN 1 trillion) in alternative assets under management.
- • PMA shareholders will receive USD 226.4 million in consideration, consisting of cash and SPARX stock, and certain key PMA employees will become significant SPARX shareholders.
- • The transaction is pending certain regulatory approvals; PMA will operate as a wholly owned member of the SPARX Group with its management team led by CEO Farhat Malik intact.
- • Malik will lead SPARX's investments in credit and derivatives, expanding the group's Asian asset management operations.
Summary
SPARX Asset Management, Japan's only listed independent investment manager, has agreed to combine with PMA Capital Management, a Hong Kong-headquartered alternative investment advisory firm, in a transaction the companies say will create the largest alternative investment firm in Asia and one of the largest in the world. The combined group will manage more than USD 8 billion (approximately YEN 1 trillion) in alternative assets. The transaction remains subject to certain regulatory approvals.
Under an agreement signed the previous day, PMA will join the SPARX Group as a wholly owned member. PMA shareholders will receive consideration of USD 226.4 million, paid in a mix of cash and SPARX stock. Certain key PMA employees will become significant shareholders of SPARX.
PMA will continue to run its core business within the SPARX Group, and its entire management team, led by Chief Executive Officer Farhat Malik, will remain in place. According to the release, PMA was founded in 2002 and has offices in Dubai and London, with investments across all Asian markets outside Japan. SPARX, founded in 1989 and headquartered in Tokyo, has offices in New York, London, Hong Kong, Seoul, Honolulu and Bermuda.
SPARX President and CEO Shuhei Abe described PMA as one of the most innovative and respected fund management companies in the alternative investment space, citing its performance and risk control record and its institutional client base. Malik said he will lead the firm's investments in credit and derivatives and that the combination supports the SPARX Group's goal of becoming the most trusted and respected investment company in the world.
Under an agreement signed the previous day, PMA will join the SPARX Group as a wholly owned member. PMA shareholders will receive consideration of USD 226.4 million, paid in a mix of cash and SPARX stock. Certain key PMA employees will become significant shareholders of SPARX.
PMA will continue to run its core business within the SPARX Group, and its entire management team, led by Chief Executive Officer Farhat Malik, will remain in place. According to the release, PMA was founded in 2002 and has offices in Dubai and London, with investments across all Asian markets outside Japan. SPARX, founded in 1989 and headquartered in Tokyo, has offices in New York, London, Hong Kong, Seoul, Honolulu and Bermuda.
SPARX President and CEO Shuhei Abe described PMA as one of the most innovative and respected fund management companies in the alternative investment space, citing its performance and risk control record and its institutional client base. Malik said he will lead the firm's investments in credit and derivatives and that the combination supports the SPARX Group's goal of becoming the most trusted and respected investment company in the world.
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