NEWS today.
Pacific Current is believed to be in talks for a deal to buy Fortlake Asset Management for about $70m.
Fortlake describes itself as an experienced fixed-income manager, offering institutional expertise in a specialised setting, focusing on generating returns above inflation.
It oversees the Fortlake Real-Income Fund, which has a minimum return of 2.5 per cent to 3.5 per cent above the prevailing Reserve Bank of Australia cash rate and the Fortlake Sigma Opportunties Fund, where it targets a minimum return of 7 to 10 per cent above the RBA cash rate.
The fund looks for risk-adjusted return opportunities within global fixed income markets.
Fortlake is founded and run by former UBS Asset Management executive Christian Baylis.
At UBS, Mr Baylis managed over $8bn of assets, and as Head of Derivative Strategy and Credit Trading at the Swiss bank, he managed over $26bn.
It is understood that Pacific Current has issued Fortlake with a term sheet for a potential transaction.
It comes as Regal Funds Management pursues the $545m Pacific Current, launching a $586m proposal that the target has described as opportunistic.
The following day, GQG, which has a market value of more than $4bn, indicated it was considering a bid for Pacific Current.
GQG would easily outmuscle Regal, which would no doubt prompt the group to consider options elsewhere.
Pacific Current’s share price is $10.37, rallying from the $7.80 it was trading at before Regal made its play.
Pacific Current owns 16 high-performing specialist boutiques in key strategic markets, including Australia, India, Luxembourg, the US and Britain.
Regal is already on its register with a 12 per cent interest. Pacific Current has a 4 per cent interest in GQG.
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