Jupiter to Acquire CCLA in £100 Million Deal to Boost UK Assets
A strategic acquisition poised to reshape the UK asset management landscape has been announced, with Jupiter agreeing to purchase CCLA, the nation’s largest manager of funds for charities, in a deal valued at £100 million. The move signals Jupiter’s intent to strengthen its position in the competitive UK market and reverse a period of recent underperformance.
Jupiter Expands Footprint with CCLA Acquisition
London-listed Jupiter announced on Thursday its plan to acquire CCLA, a transaction that will add approximately £15 billion in assets under management (AUM) to its portfolio. The deal is expected to bolster Jupiter’s scale within the UK, a market where it already holds a prominent position. According to Jupiter’s chief executive, Matthew Beesley, the acquisition will not disrupt service for existing clients.
“This deal will increase scale in our home market of the UK, where Jupiter is already a leading player, without any disruption to our existing clients,” Beesley stated.
Minimal Client Overlap Fuels Strategic Rationale
A key factor driving the acquisition is the limited overlap between CCLA’s and Jupiter’s client bases. CCLA’s substantial client roster includes the Church of England, which accounts for over a fifth of its AUM, and the firm dominates the UK’s charities sector. This complementary positioning allows Jupiter to expand its reach without direct competition for existing customers.
Navigating a Challenging Market for UK Asset Managers
The acquisition comes at a critical juncture for mid-sized UK asset managers like Jupiter. These firms are facing mounting pressures from rising costs, increased regulatory scrutiny, and a significant outflow of capital as investors increasingly favor lower-cost index-tracking products.
Since assuming the role of CEO in 2022, Beesley has actively sought opportunities to revitalize the business. This includes strategically recruiting an investment team from Origin to enhance Jupiter’s capabilities in global equities.
The acquisition of CCLA represents a significant step in Jupiter’s broader strategy to navigate these challenges and position itself for sustained growth in a rapidly evolving financial landscape.
