One River Acquires LGT's Quant Investment Team
One River Asset Management has acquired LGT Capital Partners’ Quantitative Investment Solutions team and its strategies. The transaction is an example of an acqui-hire, where a firm buys another primarily for the skills and expertise of its staff, to accelerate its own platform development.
- The transaction is expected to boost One River's assets under management by approximately a third, adding over $900 million and bringing the firm's total AUM to around $3 billion. - The deal includes the transfer of an eight-person team and the intellectual property for two specific strategies: a long volatility strategy with an 11-year track record and a systematic macro strategy with a nearly 10-year track record. - Key personnel transitioning to One River include Jean-François Bacmann, who will become Deputy CIO of Diversifying Strategies, Pascal Spielmann as President of One River Switzerland, and Simone Villa as Chief Technology Officer. - This acquisition establishes One River's first physical presence in Europe, with the acquired team and business set to operate as One River Switzerland AG, a wholly-owned subsidiary based in Zurich. - LGT Capital Partners, the seller, will maintain a significant investment in the two strategies being transferred, ensuring continuity and alignment of interests. - The transaction provides One River, a specialist in systematic risk mitigation and macro-aware solutions, with established talent and strategies that complement its existing offerings. - This move is indicative of a broader consolidation trend among alternative asset managers who are seeking to gain scale to better handle rising costs associated with technology, data, and infrastructure.
