Schroders acquires hedge fund firm

Fund manager Schroders has announced that it has purchased London-based hedge fund NewFinance Capital.

The deal for 100 per cent of the share capital of NewFinance will comprise a $101 million consideration and as much as $41 million more, dependent upon certain targets being met.

The combined Schroders and NewFinance business will have a total of $3.2 billion worth of assets under management.

The fund management company said it planned to consolidate its investments this year and reported growth pre-tax profits for 2005 of $437 million, up 18 per cent from $369 million in 2004.

Schroders witnessed strong growth in its asset management business, with profits up by 60 per cent to $338 million. Funds under management increase by 16 per cent to $213.6 billion.

The company announced a final dividend of 14.5 pence per share, up from 13.5 pence in 2004, creating a total 2005 dividend of 21.5 pence per share.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development