Rock Investments SA is a French-incorporated entity that controls NewGAMe, a shareholder in GAM which actively opposed the failed takeover bid from Liontrust for the Swiss agency.
The earlier takeover deal included an £8.9m mortgage from Liontrust, which GAM was pressured to repay when its shareholders voted in opposition to the acquisition in August.
The brand new settlement between GAM and Rock Investments SA has been agreed till 30 June 2025, with the choice for it to be prolonged by an extra 12 months.
Moreover, Rock Investments SA, together with different NewGAMe buyers will now management a 30% stake in GAM, following approval of its tender provide.
Within the replace, GAM mentioned Rock Investments SA “has a popularity as a dedicated, long-term and educated investor and a confirmed observe document of turning round companies”, including the brand new mortgage “secures financing and has assured long-term monetary stability for the agency”.
Anthony Maarek, managing director of NJJ Holding, of which Rock Investments SA is a subsidiary, mentioned: “GAM is a crucial long-term strategic funding for NJJ, and we’re dedicated with administration to restoring the corporate to a best-in-class international asset administration agency. We view it as step one in creating an funding pillar in monetary providers as a part of NJJ’s long run technique.”
Q3 AUM decline
In accordance with the replace, GAM’s whole belongings underneath administration has declined CHF 3.1bn between the top of June and 30 September 2023.
In the beginning of the interval, the agency’s AUM sat at CHF 68bn, falling to CHF 64.9bn over the three months.
The largest losses stemmed from web outflows on its fastened revenue merchandise, which skilled a CHF 1bn decline, adopted by fairness (CHF 400m), multi-asset (CHF 200m) and alternate options (CHF 100m).
On its fund administration providers portion, the AUM fell by CHF 1.4bn, with the biggest web outflows from its Swiss based mostly enterprise (CHF 700m) and an additional CHF 200m from the remainder of its Europe enterprise.
There was additionally a CHF 700m whole outflow from the market FX portion of the corporate in Europe throughout the interval.
GAM additionally detailed a wave of recent inside and exterior member appointments to the ‘group administration board’, who shall be overseen by the firm’s newly promoted CEO, Elmar Zumbuehl.
Zumbuehl had labored because the agency’s chief danger officer since 2017, and he changed earlier CEO candidate Randy Freeman, who withdrew from the method as a consequence of “unexpected household circumstances”.
Albert Saporta, director of NewGAMe, who was extremely concerned in blockading the Liontrust bid, has been appointed to the agency’s board the worldwide head of investments and merchandise.
He joins current GAM staff Rossen Djounov, who has been named international head of gross sales and distribution, GAM Luxembourg CEO Martin Jufer, who was named international chief working officer, GAM UK CEO David Kemp, named international head of authorized and compliance, and Richard McNamara, the group’s chief monetary officer, who rejoined the agency in February after the earlier CFO departed.
Zumbuehl mentioned he was “delighted” to have been in a position to strengthen the group’s management positions: “With these appointments and collectively we are going to lead the turnaround of GAM.
“Our first precedence is to give attention to investing in our shopper service and portfolio administration groups. The persevering with sturdy funding efficiency and the assist from our anchor shareholder implies that we are able to transfer ahead with confidence and with a give attention to development and returning GAM to profitability.”
GAM shareholders beforehand authorised the appointment of Antoine Spillmann, CEO and associate at Bruellan, part of NewGAMe, as chair of the GAM board.