RAB Capital has completed the acquisition of Hong Kong-based Pi Investment Management announced on June 27 for a maximum of GBP10.5m payable in cash and shares.
RAB Capital has completed the acquisition of Hong Kong-based Pi Investment Management announced on June 27 for a maximum of GBP10.5m payable in cash and shares. GBP3.97m in cash was paid to the vendors of Pi on September 28, while nearly 4.2 million ordinary shares in RAB will vest to the vendors over three years commencing in September 2008.
Further share-based consideration will become payable subject to performance, and will be delivered over a vesting period of up to five years from September 2008. As of September 28, the assets under management of the Pi business are estimated at USD209m, down from USD220m at the time the merger was announced.
The thirteen-strong Pi team, including the firm’s founders Alain Barbezat, Caesar Man Wa Luk, and Nissim Tse, have joined four RAB staff assigned to RAB Capital (Asia), a newly-formed RAB subsidiary licensed to carry on regulated activities by the Hong Kong Securities and Futures Commission from October 2.
In June RAB Capital announced it was paying up to GBP13m in cash and shares for Pi, which was established in May 2002 and manages two long/short absolute return funds as well as three managed accounts that follow the same strategy as the larger of the two funds, Pi Asia. The firm’s other fund focuses on Japan.
The firm’s strategy is to achieve consistent long-term capital appreciation while seeking to reduce overall volatility through a combination of long and short strategies in the securities of companies listed, quoted or traded on stock exchanges and the over-the-counter markets in Asia.
