Federated Investors to buy Prime Rate Capital Management LLP
Federated Investors, one of the largest investment managers in the United States, has reached an agreement to acquire Prime Rate Capital Management LLP, a United Kingdom-based provider of institutional liquidity and fixed income products, from Matrix Group Limited.
Matrix Group is an established, privately owned and independent financial services business founded in 1987. Matrix is focused on advising clients, raising funds and management of assets. Matrix’s range of activities encompasses hedge funds, UCITS, private equity and property.
Prime Rate Capital Management’s family of UCITS products include Prime Rate Sterling Liquidity Fund, Prime Rate Euro Liquidity Fund and Prime US Dollar Liquidity Fund, among other products. Financial terms of the agreement were not disclosed.
Prime Rate Capital Management’s AAA-rated liquidity funds, known as Qualifying Money Market Funds, serve the corporate and institutional market. The funds, totaling approximately £1.5bn in assets, continue to be rated AAA by both Fitch Ratings and Standard & Poor’s.
Federated Investors said the agreement will incorporate Prime Rate Capital’s team, processes and liquidity management into its money market business, with euro, sterling and dollar-denominated UCITS products positioning us for future growth.
President Gordon Ceresino noted that after hiring an additional sales person in Frankfurt this year, the firm will be looking for other opportunities to expand business in Europe and around the world.