Daily Management Review

Stanhope Capital, FWM Holdings merge to create one of the largest independent management funds


The holding company FWM Holdings, which owns the Forbes Family Trust and the American foundation Stanhope Capital Group, as well as foundations Optima Fund Management and LGL Partners, have announced a merger.

The deal will result in one of the world's largest independent private equity funds with $24.2 billion in client assets.

According to FT, the merger is taking place against a backdrop of growing competition in the financial advisory market for high net worth individuals, as well as a very long period of low interest rates and the growing costs associated with the industry's increasing regulation, all of which reinforce consolidation between fund managers. 

It is noted that the merged company intends to compete with private banks, which traditionally offer wealthy clients access to equity and shareholdings in companies, real estate investments and hedge funds, and capital preservation strategies.

Financial details of the merger between Stanhope Capital and FWM Holdings are not disclosed and the deal is scheduled to be completed in the first quarter of 2021.

source: ft.com