Financial services group Broadstone Capital has bought Harvest Global Asset Management for a sum likely to be between €4.5 million and €6 million.
Broadstone announced yesterday that it had completed the purchase of Harvest, a Dublin-based fund manager, which has a significant life and pensions business. Its main shareholder is Mr Mervyn Harris, who founded the company in 1992.
Harvest has more than €150 million in assets under management. On that basis, industry sources yesterday valued the company at between €4.5 million and €6 million.
Businesses in that sector are valued at 3-4 per cent of assets under management, and it is understood that the sale price was in that region.
The Irish Financial Services Regulatory Authority has approved the deal. Both companies will continue to operate under their respective brand names.
Harvest will continue to focus on life and pensions, while Broadstone will operate mainly in the global alternative investment market.
Founded in 2002 by former ABN AMRO executive Mr Gerry O'Neill, Broadstone Capital Group is a financial services business with four operating subsidiaries. Its main investment company, Broadstone Fund Management (BFM), is an "institutional quality" hedge fund operator.
BFM listed two funds on the Irish Stock Exchange last month, the Avenir global macro fund, and the Mespil long-short fund. Global macro funds hedge against changes brought about in global economies, generally by policy changes. They invest in currency, equity and bond markets.
Long-short funds generate returns by taking a combination of long and short positions in equities and bonds. Goldman Sachs is the prime broker for both funds.
Mr O'Neill was formerly head of fixed-interest trading at ABN AMRO in Dublin and was subsequently managing director at Kyte Fund Management Ireland. One of Kyte's lead products was rated one of the top 10 global hedge funds in 1999/2000.
Broadstone's group managing director, Mr David Murray, worked for Exxon Smurfit and was global marketing manager for Shell Chemicals in London before returning to Ireland in 2000.
Harvest generates business through a series of intermediaries, and through relationships with Irish Life, New Ireland Assurance and Merrill Lynch.
Mr Harris previously worked for Irish Life, Guinness & Mahon and Anglo Irish Bank. He will join Broadstone's main board and will remain as Harvest's director of investment.
