Freshfields has advised GAM on its acquisition of Cantab Capital Partners LLP

Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised GAM on its acquisition of Cantab Capital Partners LLP (‘Cantab’). GAM is a Swiss-listed asset management company and Cantab is a UK-based multi-strategy systematic asset manager with US$4bn of assets under management for institutional clients worldwide.

Cantab will form a key part of a new investment platform at GAM called GAM Systematic, which will focus on quantitative investing across long-only and alternative strategies and will be distributed through GAM’s existing global distribution channels. In addition to complementing GAM’s active discretionary investment offering, GAM Systematic will serve as GAM’s innovation hub for the development of new technologies, investment ideas and approaches for systematic strategies and products.

The transaction will consist of a cash payment of US$217m at closing and deferred consideration based on future management fee revenues. Cantab partners will also retain a 40% interest in future performance fees. The transaction is subject to regulatory approvals and is expected to close in the second half of 2016.

The Freshfields team advising GAM was led by corporate partner Sundeep Kapila and corporate senior associate Keir MacLennan.

Commenting on the deal, Sundeep said, ‘As always, we were delighted to support GAM with this opportunity which offers huge potential for all parties, combining a traditional acquisition structure with innovative arrangements to recognise future performance. It was particularly pleasing to conclude matters in the context of the wider market turbulence, showing the continued underlying strength of the UK market, and of these parties in particular.’