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Kepler Cheuvreux subsidiary Ellipsis Asset Management has moved to expand its capabilities in the convertible bond segment with the acquisition of Rothschild & Co ’ s business .
The transaction is subject to regulatory approval . As part of the deal two Rothschild portfolio managers – Cristina Jarrin and Mikael Dauvert – will move to Ellipsis AM .
Ellipsis AM ’ s convertible team currently comprises of four portfolio managers , with each one performing the role of trader alongside acting as portfolio manager .
“ The transition will be carefully managed through close collaboration between Ellipsis AM and Edmond de Rothschild AM to ensure seamless service continuity for investors ,” Kepler said in a statement confirming the transaction .
Convertible bonds are a hybrid of bonds and equities . After buying the bond , its new owner has the option to convert that into equity in that company in the future should they wish to do so .
Kepler ’ s Ellipsis AM set to acquire Rothschild AM convertible bond business
THE TRANSACTION INVOLVES THE TRANSFER OF TWO ROTHSCHILD PORTFOLIO MANAGERS , CRISTINA JARRIN AND MIKAEL DAUVERT , TO ELLIPSIS .
It ’ s a cheaper way for companies to raise money as they don ’ t have to pay as much coupon due to the fact that they ’ re potentially having to give away equity at the end of that bond ’ s life .
Asset management subsidiary , Ellipsis , claims that following close of the acquisition it will be among the top five asset managers in Europe active in this space .
European agency broker Kepler moved to acquire Ellipsis from Exane in 2021 . At the time of the transaction , the asset manager had € 2.8 billion in assets under management , specialising in credit , volatility , and listed derivatives .
Two years after its integration , the asset manager has seen significant growth , with Kepler reporting a 30 % growth to € 3.2 billion in its assets under management for 2023 .
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