Jupiter purchases charity investment firm CCLA for £100 million in a deal
In a significant move, Jupiter, a FTSE 250-listed asset manager, has announced the acquisition of London-based charity asset manager CCLA for £100m. This deal, expected to be completed by the end of the year, subject to regulatory approvals, marks a significant step forward in Jupiter's strategic objective of increasing scale, specifically within the UK.
CCLA, the UK's largest asset manager focused on serving non-profit organisations, manages over £15 billion in assets under management. After the deal completes, Jupiter's total Assets Under Management (AUM) will rise to £59bn. The acquisition opens up a new client channel for Jupiter, as CCLA primarily serves charities, religious institutions, and local authorities.
The strategic reasoning behind this acquisition is multifaceted and aligns with Jupiter's broader goals. One key objective is the expansion in the UK market. By acquiring CCLA, Jupiter aims to increase its scale in its home market without disrupting existing clients. This move allows Jupiter to diversify its client base and expand its influence in the UK non-profit sector.
Another objective is enhancing investment capabilities. By acquiring CCLA, Jupiter gains access to specialized investment expertise tailored to the non-profit sector. This acquisition extends Jupiter's range of investment capabilities, enabling it to offer more comprehensive services to its clients.
Operational and cost synergies are also expected from this deal. Jupiter anticipates achieving significant cost synergies, targeting a minimum of £16 million per annum by the end of 2027. This is expected to improve Jupiter's operational efficiency and support its medium-term goal of achieving a 70% cost-to-income ratio.
The acquisition also aligns with Jupiter's strong roots in responsible investment and client-centric approach. CCLA's commitment to sustainable investment returns and market-leading client service fits well with Jupiter's values, ensuring a smooth integration and continued high-quality service for clients.
Matthew Beesley, CEO of Jupiter, expressed his delight at CCLA becoming part of Jupiter, stating, "We are delighted to welcome CCLA to Jupiter. This acquisition is a strategic move that aligns with our goals of increasing scale, enhancing our investment capabilities, and delivering operational synergies."
The acquisition of CCLA is expected to be materially accretive to management fee earnings per Jupiter share from day one. Further accretion is expected over time as synergies are delivered.
In conclusion, the acquisition of CCLA by Jupiter is a strategic move to enhance its market presence, expand its investment offerings, and leverage operational synergies to drive growth and profitability. This move demonstrates Jupiter's commitment to expanding its presence in the UK market.
Jupiter's acquisition of CCLA, the UK's largest asset manager for non-profit organizations, will significantly boost its total Assets Under Management (AUM), increasing from £59bn to over £74bn. The strategic move aligns with Jupiter's goals of expanding in the UK market, diversifying its client base, and enhancing investment capabilities by gaining access to specialized expertise tailored to the non-profit sector.
