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Credit Suisse unveils JOHIM deal as Bermuda National backs MBO

Credit Suisse unveils JOHIM deal as Bermuda National backs MBO

Credit Suisse has agreed to sell JO Hambro Investment Management (Johim) to Bermuda National Limited (BNL), which is supporting a management buyout (MBO) at the wealth boutique. 

BNL is a listed financial services holding company created to own financial institutions, including banks and investment advisory businesses.

Its major investor is Utilico, which is a UK listed international investment group with a diversified portfolio of businesses.

the part-MBO, backed by BNl, is for an undisclosed sum and will Johim’s existing management have continued autonomy to manage its business. Management and Johim staff will also be offered the opportunity to become shareholders alongside BNL.

It follows the news, exclusively revealed by Wealth Manager earlier in the month, that the investment business was in talks with one suitor.

BNL intends to retain Johim’s management team, the client relationship focus and its investment process. At the end of December the business had around £3.6 billion under management, alongside £4.8 billion in assets under control.

Hugh Grootenhuis, CEO of Johim, said in a statement: 'We are very excited about the future and welcome BNL as our new majority shareholder who offers opportunities for us to continue to grow the business, including in areas where we would otherwise not have direct access, such as in emerging markets, where for example Utilico has significant investments.

'The change of ownership has been made with our clients’ interests uppermost in our minds to ensure the right deal both for our clients and for all the staff at Johim. There are no plans to change our people, business model or investment process.'

He added: 'We have enjoyed a successful relationship with Credit Suisse over the last twelve years, and will continue to work with Credit Suisse and to manage portfolios for their clients in the future.'

Meanwhile BNL chairman Warren McLeland said: 'The proposed acquisition of Johim is a significant step for BNL...It is expected that the acquisition will provide a number of synergies across the group. BNL continues to be offered opportunities in the financial services sector and we believe that Johim is proof of the type of investment opportunities currently available.'

Phil Cutts, CEO of Credit Suisse added that following the completion of the deal the UK will continue to remain a key market for the bank. It demonstrated this through yesterday's acquisition of Morgan Stanley's European and Middle East wealth management businesses.

St James-based Johim has over 100 employees, including 25 portfolio managers.

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