SPARX Acquires PMA To Form $8bn Asian Alternative Investment Giant

by Carla Johnson, Investors Offshore.com

01 May 2006

The Board of Directors of SPARX Asset Management Co., Ltd., the Japanese investment manager, has entered into an agreement to acquire a 100% stake in Hong Kong's PMA Capital Management Limited, in order to create one of the largest alternative asset managers in Asia.

The $226 million deal provides SPARX with a top-level institutional platform in Asian markets outside of Japan and a deeper, more diversified global investor client base. The move will allow SPARX to establish a dominant position to capture future growth potential in Asian markets.

PMA is a Hong Kong-headquartered alternative investment advisory and management services firm founded in 2002, with offices in Dubai and London, and investments in most Asian markets outside of Japan. It is the single largest alternative investment firm in Asia outside of Japan by assets under management.

PMA will retain its alternatives focus under the plan, and all of its managers will stay on board.

PMA stock held by outside shareholders will be acquired for cash, while PMA employee-shareholders will receive SPARX stock and/or cash. SPARX expects to partially finance the transaction with bank loans, for which it has prior approval from one or more of its main banks.

The combined entity will have assets under management of $8 billion.

SPARX also recently acquired a majority share of Cosmo Investment Management Co., Ltd., a Korean investment company.

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