25 Jan 2012
The senior executive partners of Dalton Strategic Partnership have reached agreement in principle to raise their share of the equity in the business to 51.5% through a purchase of equity from the Dalton family. The agreement is due to complete in February and will leave the family with 25% of the firm’s equity.
The transaction follows the death of co-founder Andrew Dalton in April 2011. DSP’s external shareholders and strategic partners, FuNNeX Asset Management, based in Tokyo, and Interward Asset Management, based in Toronto, retain their interests. DSP has also unveiled a new management team. Magnus Spence, who co-founded DSP in 2002, has taken over as managing partner. Rupert Caldecott is head of wealth management; Leonard Charlton, head of the absolute return business; Nick Mottram, head of long-only equity; and Richard Jones, head of sales and marketing. All of the members of the management team, together with other senior executives of the firm have invested capital in DSP and in the Melchior range of funds.
The fund, and its offshore equivalent, have delivered positive returns every year since 2006, and as a result, have attracted significant assets over the last two years. In October 2011, DSP added to its range of absolute return funds with the launch of the Melchior Selected Trust Indian Absolute Return Fund.
The transaction follows the death of co-founder Andrew Dalton in April 2011. DSP’s external shareholders and strategic partners, FuNNeX Asset Management, based in Tokyo, and Interward Asset Management, based in Toronto, retain their interests. DSP has also unveiled a new management team. Magnus Spence, who co-founded DSP in 2002, has taken over as managing partner. Rupert Caldecott is head of wealth management; Leonard Charlton, head of the absolute return business; Nick Mottram, head of long-only equity; and Richard Jones, head of sales and marketing. All of the members of the management team, together with other senior executives of the firm have invested capital in DSP and in the Melchior range of funds.
"Andrew was a much-loved and inspirational leader of the firm until his tragic death last year and we are committed to maintaining the independent partnership structure that he created,” said Spence. “By investing capital in the business and in the Melchior range of funds, the interests of my partners and I are closely aligned with those of our clients who remain at the centre of everything that we do. We are also aligned with our external shareholders and are incentivised to grow DSP as a successful and profitable business. “The changes follow a period of strong performance in 2011 as assets under management grew 24% and revenues 50%, leading to a significant increase in profits. The success of the Melchior Selected Trust European Absolute Return Fund has been a strong driver of the business in 2011.
The fund, and its offshore equivalent, have delivered positive returns every year since 2006, and as a result, have attracted significant assets over the last two years. In October 2011, DSP added to its range of absolute return funds with the launch of the Melchior Selected Trust Indian Absolute Return Fund.
“DSP is a well-balanced business with good growth opportunities in each of its three core business areas,” said Spence. “The absolute return business has been a key driver of growth over the last two years and provides consistent returns irrespective of the direction of equity markets. “
He added: “It is complemented by our long-only equity business which comprises a range of institutional and retail equity funds which offer the prospect of significant growth opportunities when the appetite for equity risk returns. Our wealth management business delivers a high quality personalised investment proposition to high net worth clients, trusts, charities and institutions. With a focus on achieving absolute returns by employing active asset allocation, our wealth management clients have enjoyed stable investment returns over the last nine years. “
