RAB Capital has agreed to acquire the business of Hong Kong-based Pi Investment Management Limited for £13 million (US$25.9 million), payable in cash and shares. The new RAB subsidiary will provide investment management and advisory services in connection with existing RAB products as well as the two Pi funds.
Under the terms of the deal, RAB will pay the partners of Pi £3.97 million ($US7.9 million) in cash and 4,193,265 ordinary shares that will vest over three years. Depending on the total assets under management on July 1 of this year and performance over the first three years, further shares may become payable and will be delivered over a vesting period of up to five years.
Pi was established in 2002 by Alain Barbezat, Caesar Man Wa Luk and Nissim Tse. The three Pi founders and all 10 other Pi staff will continue to operate within Pi. The firm currently manages two long/short funds and three managed accounts linked to the larger of the two funds, the Pi Asia strategy, which focuses on pan-Asian equity.
Separately, the Pi team manages the Pi Japan strategy, which was launched in 2005. As of June 1, the combined strategies represented approximately $220 million in assets under management.
“RAB’s third strategic acquisition since listing further diversifies the business and brings us a greater depth of expertise in one of the world’s most important regions,” said Michael Alen-Buckley, RAB’s executive chairman. “This acquisition also offers RAB the ability to develop its distribution and improve its trading capacity in the Asia region, where we have further ambitions.”