Lehman Brothers buys Grange Securities
Investment and advisory boutique Grange Securities is planning to expand its wealth and asset management services following its acquisition by global investment bank Lehman Brothers yesterday for an undisclosed amount.
Established in 1995, Grange Securities is involved in fixed income, structured credit, hybrids and high yield markets, and more recently expanded into investment management, equities, corporate finance, asset management and private clients.
The company, which will become part of Lehman’s Asian operations while retaining its own name, offers two pooled investment trusts through its Grange Asset Management — the EQT Grange High Income Fund and the Grange Enhanced Cash Fund.
Grange Securities managing director Glenn Willis, who will continue in the role, said the acquisition will give Grange the “resources and support” of a leading global investment bank to broaden its services into other areas of the Australian market.
“We will be seeking to build off our very strong base in the broader fixed income business in expanding into the equity, wealth, asset management businesses and also corporate finance,” he said.
Lehman Brothers Asia chief executive Jess Bhattal, to whom Willis will report, said the acquisition of Grange Securities was motivated primarily by the “very compelling overall fundamentals” in the Australian economy.
“In particular, we’re very excited about the growth of the structured business in this market, as well as the private equity market, and also the enormous potential in the wealth and asset management space.
“The asset management side, particularly on the debt high income side, is an area that Grange Securities is specialising in, and which we believe offers enormous opportunities over here.”
Bhattal added that the acquisition of Grange Securities “fills the last geographic gap Lehman Brothers had in terms of our representation in the Asia Pacific region, and one that was so glaring because of the size of the Australian market in the region”.
“It really didn’t make a lot of sense for us to be represented in almost every other major fee market in Asia except Australia, which is in fact the second largest fee pool,” he said.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
