Hedge fund Matrix Group has struck a deal to sell its liquidity fund business to money market giant Federated Investors.
Federated will acquire Matrix's Prime Rate Capital Management for an undisclosed amount, pending regulatory approval, the two sides said. Prime Rate manages about £1.5 billion in triple-A-rated UCITS III-compliant liquidity funds.
"The agreement will incorporate Prime Rate Capital’s experienced team, insightful processes and excellence in liquidity management into Federated’s money market business—with euro, sterling and dollar-denominated UCITS products positioning us for future growth,” Gordon Ceresino, president of Federated International Management, said. “After adding an additional sales person in our Frankfurt office earlier this year, Federated continues to seek opportunities to expand our global business in Europe and around the world.”
“We opted to join Federated because of the company’s reputation as a premier global liquidity manager since the 1970s,” said Dennis Gepp, managing director and chief investment officer of Prime Rate Capital. “Our clients and shareholders in the funds can be confident in Federated’s stewardship and credit process, as it is one of the world’s largest and most experienced managers of money market products.”