Magnus Spence, Managing Partner, Dalton Strategic Partners

Change to the ownership structure and management of Dalton Strategic Partnership

Following the sudden death of Andrew Dalton in April 2011, agreement has been reached, in principle, for the purchase of equity of Dalton Strategic Partners (DSP) from the Dalton family, by the executive partners of the firm.

As a result of the transaction, senior executives of DSP will control 51.5% of the equity of the firm while the Dalton Family will continue to retain a quarter of the firm’s equity. The agreement, for which Heads of Terms have been signed, is due to complete in February 2012 and will ensure that the firm remains independent and incentivises the executives to continue to grow the business as a private company. 
 
DSP’s external shareholders and strategic partners, FuNNeX Asset Management, based in Tokyo, and Interward Asset Management, based in Toronto, will also retain their interest in DSP.  They remain supportive of the independent status of the business and are fully committed to the firm’s ongoing development.
 
This announcement follows a period of strong performance for the firm which increased assets under management by 24% and revenues by 50% in 2011, leading to a significant increase in profits.
 
The success of the Melchior Selected Trust European Absolute Return Fund has been a strong driver of the business in 2011.  The fund, and its offshore equivalent, have delivered positive returns every year since 2006, and as a result, have attracted significant assets over the last two years.  In October 2011, DSP added to its range of absolute return funds with the launch of the Melchior Selected Trust Indian Absolute Return Fund.
 
DSP has also announce a new management team. Magnus Spence (pictured), who co-founded DSP with Andrew Dalton in 2002, has taken over as Managing Partner of the firm and leads a new management team comprising the following senior executives:   
 
Rupert Caldecott – Head of Wealth Management business
Leonard Charlton – Head of Absolute Return business
Nick Mottram – Head of Long-Only Equity business
Richard Jones – Head of Sales & Marketing
 
All of the members of the management team, together with other senior executives of the firm have invested capital in DSP and in the Melchior range of funds.
 
Spence, says”: Andrew was a much-loved and inspirational leader of the firm until his tragic death last year and we are committed to maintaining the independent partnership structure that he created. By investing capital in the business and in the Melchior range of funds, the interests of my partners and I are closely aligned with those of our clients who remain at the centre of everything that we do. We are also aligned with our external shareholders and are incentivised to grow DSP as a successful and profitable business. 
 
“DSP is a well-balanced business with good growth opportunities in each of its three core business areas.  The Absolute Return business has been a key driver of growth over the last two years and provides consistent returns irrespective of the direction of equity markets. It is complemented by our Long-Only Equity business which comprises a range of institutional and retail equity funds which offer the prospect of significant growth opportunities when the appetite for equity risk returns. Our Wealth Management business delivers a high quality personalised investment proposition to high net worth clients, trusts, charities and institutions.  With a focus on achieving absolute returns by employing active asset allocation, our wealth management clients have enjoyed stable investment returns over the last nine years. 
 
Given these dynamic and complementary businesses, DSP is well placed to respond to the challenges of today’s investment environment.”
 
 

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