Interesting to see that Charter Hall is able to buy 50 % of Paradice Investment, at a low price : PE of 10 x and at only 2.3 % of AUM ($ 18.2 bn).
Would not be surprised that MA Financial does a similar operation, if they are able to find a comparable opportunity.
A lot of interests to do such an operation for MAF :
- given the low price of a lot of equity asset managers now, such an operation could increase their EPS,
- it would also allow MAF to pursue its diversification, by growing its equity asset management business (where they have a significant growth of AUM now),
- acquiring an equity asset manager could also give access to a new basis of customers, which could be interested by their alternative assets.
Like PNI, MAF could also hire a team of asset manager (rather than an existing company).
It is a much cheaper option and has proved to be very successful in PNI's case, as the new teams are usually able to attract their previous customer basis overtime.
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