Majedie to benefit as its manager agrees to join Brown Advisory
Majedie Investments Plc said Monday that its manager, Marylebone Partners, has entered into a formal agreement to become part of Brown Advisory, with the deal subject only to regulatory approval.
On completion, Majedie said it would receive a cash payment for its 7.5% stake in Marylebone, though the sum would not be material to its net asset value.
At the same time, management fees would be reduced to 0.8% on market capitalisation up to £150m, 0.675% between £150m and £250m, and 0.6% thereafter, compared with the current 0.9%, 0.75% and 0.65% tiers.
Majedie confirmed there would be no change to its investment mandate, philosophy, approach or the decision-making autonomy of the existing management team.
Chair Christopher Getley said the board saw several advantages in the combination.
"In addition to the cash payment and fee reduction, the board sees three further benefits from the combination of Marylebone and Brown Advisory.
"Firstly, that access to Brown Advisory's global research team will deepen the analytical capabilities behind each of Majedie's Liquid Endowment strategies in direct investments, external managers, and special investments.
"Secondly, that collaboration with Brown Advisory's external manager selection teams in London and the US will broaden the opportunity set and strengthen the team's ability to negotiate preferential terms.
"Thirdly, that Brown Advisory's institutional scale will reinforce Marylebone's ability to support Majedie's growth ambitions."
At 0933 BST, shares in Majedie Investments were up 2.83% at 236.51p.
Reporting by Josh White for Sharecast.com.
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