Fund manager Schroders has purchased London-based hedge fund NewFinance Capital, bringing Schroder’s assets under management to $3.2 billion.
The deal for all of the share capital of NewFinance will include a $101 million consideration and as much as $41 million more, dependent upon certain targets being met.
The fund management company said it planned to consolidate its investments this year and reported growth pre-tax profits for 2005 of $437 million, up 18% from $369 million in 2004. Schroders also witnessed strong growth in its asset management business, with profits up by 60% to $338 million, and funds under management increased by 16% to $213.6 billion.
The company announced a final dividend of 14.5 pence per share, up from 13.5 pence in 2004, creating a total 2005 dividend of 21.5 pence per share.