Federated Investors, Inc. Expands Globally with Acquisition of London-based Prime Rate Capital Management
- Prime Rate Capital Management, a leading cash manager in the United Kingdom with GBP 2.7 billion ($4.3 billion USD) in managed assets extends Federated’s global product line.
(PITTSBURGH, Pa., 04/16/2012 02:00 AM) — Federated Investors, Inc. (NYSE: FII), one of the largest investment managers in the United States, completed its acquisition of Prime Rate Capital Management LLP (PRCM), a United Kingdom-based provider of institutional liquidity and fixed income products, from Matrix Group Limited.
Now known as Federated Prime Rate Capital Management, the firm will continue to be based in London and led by Dennis F. Gepp, managing director and chief investment officer of cash, who also is a founding partner of the firm. Prior to joining PRCM in 2007, Gepp managed the treasury departments at leading U.K. and international banks for 34 years. The business and all of its employees will operate as a subsidiary of Federated Holdings (UK) Limited and Federated Global Holdings LLC, each group companies of Federated Investors, Inc.
"Incorporating the experienced PRCM cash management team into Federated’s cash management business strongly positions us for future growth in Sterling, Euro and U.S. dollar-denominated UCITS products," said Gordon J. Ceresino, president of Federated International Management Limited. "We continue to seek opportunities to expand Federated's global business in Europe and around the world."
With $192.5 billion USD (GBP 121 billion) in AAA-rated money market funds, Federated is one of the two largest U.S. managers of money funds of the highest credit quality, as of Feb. 29, 2012, according to iMoneyNet.
"Our clients will benefit from Federated's stewardship, management and stringent credit research," said Gepp. "As part of the global Federated enterprise, we will continue our time-tested principle of seeking to manage clients' money to preserve capital, maintain daily liquidity and maximize yields, using a disciplined approach that avoids speculative strategies and financial instruments."
The acquisition grows Federated's European presence with a family of U.K.-domiciled UCITS products, including Federated Prime Rate Sterling Liquidity Fund, Federated Prime Rate Euro Liquidity Fund and Federated Prime Rate U.S. Dollar Liquidity Fund, among other products. Federated Prime Rate Sterling Liquidity Fund has received iMoneyNet’s Top Manager Award for highest gross returns among Sterling funds over GBP 1 billion for the last three years. Federated Prime Rate U.S. Dollar Liquidity Fund received iMoneyNet's Top Manager Award for highest gross return for 2011 among U.S. dollar funds between GBP 100 million and GBP 1 billion.
Federated 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 $4.0 billion USD (GBP 2.5 billion) in assets, are rated AAA by both Standard & Poor's and Fitch Ratings.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $369.7 billion in assets as of Dec. 31, 2011. With 134 funds, including a family of Irish-domiciled UCITS products, as well as a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 4,700 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
Certain statements in this press release, such as those related to Federated's international growth prospects and the benefits to clients resulting from the transaction, constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of Federated to successfully grow its international business, integrate PRCM into its business, and the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.