Clime Investment Management is finalising a major deal in exchange for a majority ownership in Ralton Asset Management and appointed a new chief investment officer to lead the strategy.
Upon completing due diligence, Clime's transfer of $270 million to establish the separately managed account and managed discretionary account solution with Ralton is in exchange for a 75% ownership in the latter.
The managed accounts strategy is set to have $330 million in assets under management.
The equity ownership is due to finalise is February. As part of the deal, Clime will have the option to fully acquire Ralton in the second half of 2022.
Ralton chief investment officer and co-founder Will Riggall will become chief investment officer of Clime pursuant to the transaction.
Bringing together the combined scale capabilities of Clime and Ralton under the one operating entity will enable the Clime Investment Management team to provide superior outcomes to advisers and clients across an expanded range of investment solutions, Rigall said.
Assets for Clime's SMA business stood at $99 million at the end of September 2021, while IMAs had $581 million in funds under management.
Ralton was previously owned by 360 Capital for a short period. Rigall bought his firm back from 360 Capital last August.