£53.6 million Deal Between F&C and Thames River Capital

On April 28 2010, Pacific Investments PLC and its subsidiary company Red River Capital announced a sale of Thames River Capital (TRC) for £53.6 mln to F&C Asset Management. However, the terms of transaction could surprise many people: Thames River, set up in 1998 by Pacific, will keep both its autonomy within the F&C Group and its CEO Charlie Porter, in a bid to produce minimal disruption to its operations.

This acquisition is quite favourable to F&C as it should strengthen its business positions and goes in line with the company’s strategy of becoming one of Europe’s leading multi-specialist asset management businesses.

Referring to the success of REIT Asset Management acquisition held in 2008, F&C Chief Executive Alain Grisay noted that the current acquisition was a significant milestone of their multi-specialist business development. Nevertheless, the company has wished to maintain the individual investment approach and culture that had brought success to Thames River Capital. Mr. Grisay also noted their intentions to minimise disruption, to provide the expanded F&C Group with a wider choice of possibilities to service its clients and create stockholder value.

As for Thames River’s affiliate, Nevsky Capital, it will be excluded from sale and will afterwards, be passed to Pacific and other Thames River shareholders’ management.

Sir John Beckwith, Chairman of Pacific Investments, was absolutely positive about this investment commenting that “F&C would be a good partner for Thames River”.

Pacific will keep on developing its current portfolio of fund management business, which comprises River and Mercantile Asset Management alongside Pacific Real Estate Capital Partners.