QMA, the quantitative equity and global multi-asset solutions manager of PGIM, has acquired Wadhwani Asset Management (WAM), a London-based quantitative macro-focused investment management firm.
Upon closing, WAM, which runs quantitative macro hedge funds and risk premia strategies, will become part of the QMA business.
Subject to all regulatory approvals, the deal is expected to close in the first quarter of 2019. Upon completion, the existing WAM investment platform will operate independently of QMA’s investment platform, with WAM founder Dr Sushil Wadhwani continuing to serve as its chief investment officer. The acquisition will bolster QMA’s global build-out efforts, and QMA expects to invest significantly in further developing the WAM business. QMA managed USD128.1 billion as of September 30, 2018.
“I am pleased to announce the acquisition of Wadhwani Asset Management and look forward to working with Sushil and his team,” says Andrew Dyson (pictured), chief executive officer and chairman of QMA. “Wadhwani Asset Management has significant experience and pedigree in systematic and quantitative macro investing, alongside Sushil’s sterling reputation as an economist, investor, and academic.”
“QMA has grown rapidly outside the US over the past 12 months, and this acquisition is yet another milestone, as we continue to develop our global expansion strategy,” says Dyson. “In addition to extending QMA’s product set, this deal offers an appealing combination of access to complementary industry-leading products, with the benefit of greater breadth of geographic reach and operational scale.”
Founded in 2002, WAM utilises a global multi-asset research discipline with a macro overlay and manages a range of absolute return strategies offering returns that are uncorrelated with traditional asset classes. WAM’s similar systematic investment philosophy built on economic, behavioural and academic foundations with Keynesian roots makes it an excellent cultural complement to QMA as well as a natural extension of QMA’s quantitative capabilities.
“My conversations with Andrew convinced me that we could not find a better home to further develop our business in the quantitative investment space,” says Dr Wadhwani. “QMA and PGIM’s broad reach and quantitative focused distribution capabilities are very attractive, as is their first-rate operational platform. My investment team and I were delighted to find a partner that will allow us to offer our clients richer options by combining what we do with QMA’s best-in-class products while also retaining our investment autonomy. We look forward to partnering with QMA to maximise our capabilities and realise our combined vision.”
PGIM CEO David Hunt, says: “This acquisition underscores our commitment to expanding PGIM’s global footprint and investment capabilities to serve the evolving needs of our clients with a broad range of investment strategies and solutions. We will continue to explore both organic and non-organic opportunities to add unique and complementary capabilities to our core businesses worldwide, and the WAM transaction exemplifies this approach.”
