Jupiter Fund Management has announced the acquisition of CCLA, the º£½ÇÊÓƵ's leading investment manager for non-profit organisations, in a move to broaden its domestic footprint.
Valuing CCLA at £100m on a 100 per cent equity basis, this deal signifies Jupiter's debut into the non-profit investment sector, as reported by .
The FTSE 250 company will incorporate CCLA's £15.1bn assets under management, which are held on behalf of charities, religious institutions and local authorities.
The acquisition, fully financed from Jupiter's existing cash reserves without any new debt or equity issuance, is projected to be finalised before the end of 2025, pending regulatory approval.
Following the takeover, Jupiter anticipates annual recurring cost savings of at least £16m as it aims to streamline support functions and integrate CCLA's technology to minimise system duplication.
The fund manager expects nearly £17m in one-off integration costs over the forthcoming four years to facilitate these savings.
Jupiter to return capital to shareholders
Jupiter has also outlined plans to achieve a cost-income ratio of 70 per cent, implying that for every £1 of revenue earned, only 70p will be spent. The firm stated that the acquisition represents "another step" towards this goal.
In addition, Jupiter has revised its capital allocation policy for the 2025 financial year, intending to return 50 per cent of fee-related revenue to shareholders. These payouts will be distributed through a mix of special dividends and additional share buybacks.
CCLA's current investment management teams are likely to remain unchanged after the acquisition, ensuring minimal disruption.
Matthew Beesley, Jupiter's Chief Executive Officer, stated: "This Acquisition helps us to increase scale in our home market of the º£½ÇÊÓƵ, where Jupiter is already a leading player, without any disruption to our existing clients.
"It opens up a new client segment for us, broadening our appeal to a range of charitable and religious institutions, both in the º£½ÇÊÓƵ and internationally, while also allowing us to expand our existing presence in the º£½ÇÊÓƵ Local Authority sector."
Peter Hugh Smith, CCLA's Chief Executive, added: "We will now benefit from Jupiter's technology and operational infrastructure, its broad range of investment capabilities and extensive global distribution footprint."
