18 Oct 2010
Royal Bank of Canada has agreed to buy BlueBay Asset Management, a leading fixed income investment fund operator, for £963 million as the bank continues to build out is wealth management operations. RBC will pay £4.85 in cash for each BlueBay share.
It represents a premium of 29% to the last closing price of BlueBay shares on October 15, 2010. The asset manager, which runs several fixed income hedge funds, floated at £3.00 in 2006. It manages assets of $40 billion.
Based in London, BlueBay manages a combination of long-only and alternative investment strategies across the sub-asset classes of fixed income credit - primarily focused on European and emerging markets strategies - including: investment grade corporate debt, high yield corporate debt, emerging market debt, convertible bonds, distressed debt, and multi-strategy debt capabilities.
BlueBay will retain its investment autonomy and related operational independence following the acquisition. Its 220 employees will join RBC's Global Asset Management business and collaborate with their new partners in RBC Wealth Management, RBC's global segment for wealth and asset management solutions.
It represents a premium of 29% to the last closing price of BlueBay shares on October 15, 2010. The asset manager, which runs several fixed income hedge funds, floated at £3.00 in 2006. It manages assets of $40 billion.
"This acquisition will further RBC's strategy to leverage our position as a top 10 global wealth manager, and continue to expand our asset management solutions for the benefit of our clients around the world," said George Lewis, group head, RBC Wealth Management. "BlueBay is an ideal fit with RBC's growing asset management business and we are confident that this transaction will benefit clients, employees and shareholders of both firms."
Based in London, BlueBay manages a combination of long-only and alternative investment strategies across the sub-asset classes of fixed income credit - primarily focused on European and emerging markets strategies - including: investment grade corporate debt, high yield corporate debt, emerging market debt, convertible bonds, distressed debt, and multi-strategy debt capabilities.
BlueBay will retain its investment autonomy and related operational independence following the acquisition. Its 220 employees will join RBC's Global Asset Management business and collaborate with their new partners in RBC Wealth Management, RBC's global segment for wealth and asset management solutions.
"RBC's strength and stability make it an ideal partner for BlueBay," said Hugh Willis, CEO of BlueBay. "Its commitment to its clients and its high standards of business practices mirror our own and lie at the heart of the excellent cultural fit between our firms. We greatly look forward to working together in providing our clients with world class investment solutions."BlueBay is one of Europe's largest independent managers of fixed income debt funds and products. its clients include institutional and high net worth investors in the UK, Europe, the U.S., the Middle East, Asia and Australasia. In September, RBC Wealth Management said that it would be moving from three geographic wealth management businesses to four in Canada, the US, the UK and emerging markets.
