Ashmore Acquires Emerging Market Management

Ashmore Group, a UK-based investment manager, has agreed to acquire a 62.9% stake in Emerging Market Management for $246.0m. EMM has $10.4bn AUM, according to the company. “They have some regional strategies, of which the Latin and Latin Small Cap are two they have been managing. We’re delighted to have those available to us under the umbrella of Ashmore,” says Graeme Dell, group finance director for Ashmore. “We hope to bring a significant opportunity to bring new investors to some of those global and LatAm funds.” An initial cash consideration of $96m will be paid on completion of the deal along with $29.9m in new restricted Ashmore shares. An earn-out of up to $120.1m is payable in 3 annual installments. The earn-out will be payable in a combination of cash and new Ashmore shares. Goldman Sachs and UBS acted as joint financial advisers and brokers to Ashmore. Ropes & Gray and Slaughter & May acted as legal advisors to Ashmore. Berkshire Capital Securities acted as financial adviser to EMM. Ashmore manages $46.7bn as of year-end 2010.