Zeus acts as Financial Adviser to City of London Investment Group on its all share merger with Karpus Management
10 June 2020
Zeus acted as Financial Adviser and Sole Broker to City of London Investment Group (CLIG.L) which has entered into an all share Merger Agreement to acquire Karpus Management Inc. (KMI), a US-based investment management business, on a debt free basis, for a consideration of £78.4 million.
KMI is a US SEC-registered investment adviser, providing investment management services primarily for US high net worth clients and small corporate accounts. As at 31 May 2020, KMI had US$3.4 billion in funds under management for 2,273 client accounts. Most client assets are managed in balanced portfolios, with over 50 per cent. invested in CEF and CEF-preferred securities. KMI employs 36 staff including 11 that perform investment advisory functions, including research.
CLIG intends that KMI will continue to operate as a distinct entity and a fully operational business within the enlarged entity.
The Directors believe that the merger with KMI is highly complementary and represents an opportunity for significant diversification, which is in line with CLIG’s strategic plan and will reinforce CLIG’s presence in the US where it is already very well established. The acquisition has the potential to be earnings enhancing for the first full financial year following completion*.
*completion is subject to Shareholder Approval and Admission
Martin Green
Co-Head of FIG at Zeus CapitalKMI has been a business well known to the CLIG team for a while and the merger is a watershed moment in CLIG’s history providing both scale and diversity to its business. It has been a privilege to work with CLIG on this transaction and Zeus looks forward to supporting the enlarged team in the future. The fact that KMI founders and management have elected to choose an all share offer is a strong vote of confidence in the future for both companies.
Barry Aling
Chairman of City of London Investment GroupZeus Capital has been instrumental in guiding City of London Investment Group PLC through this trans-Atlantic merger, acting as Financial Adviser and Sole Broker. As Chairman of the Group, I am confident that our shareholders will benefit from the combination of these two respected investment management firms and we will move ahead as a stronger, more profitable entity. We are grateful to have been well-advised.
Zeus team
Members of the Zeus team included Martin Green, Daniel Harris, Mike Cuthbert and Ben Burnett.
Zeus is a leading adviser to small and mid-cap private and public companies. Since 2013, Zeus has acted on over 140 transactions across public and private markets, with a Gross value of over £9.0bn.