EQ Investors ends sale conversations to remain independent
EQ Investors has decided to remain independent after conversations with several interested parties.
Our sister publication Portfolio Adviser exclusively revealed on 3 April it was exploring “strategic partnerships” with larger firms as philanthropist John Spiers, who acquired the firm a decade ago, said passing his shares to a charitable foundation may not be the right path for the sustainable investment manager’s future.
However, in an update from the firm, we can again exclusively reveal the firm has decided remaining independent is the best option for its clients, colleagues and shareholders.
Joint chief executive Sophie Kennedy (pictured) said: “We have worked incredibly hard as a team to create an unrivalled proposition in sustainable investing and remain highly confident in the future prospects of EQ to take advantage of the market opportunity available in the years to come.
“As the regulatory and sustainable landscape becomes more complex and the costs involved in servicing sustainable clients increases, we are strongly positioned to pursue our organic growth strategy, supporting clients and advisers investing in off-the-shelf MPS, bespoke, white-labelled, and co-manufactured propositions.”
She added EQ is strongly positioned to pursue organic growth strategy and take advantage of market opportunities, while focusing on “internal innovation and adhering to its core values”.
“We will continue investing in the business to further enhance its profile and harness our vast sustainable investment expertise,” Kennedy commented.
In April, Spiers said while there are benefits to a business being controlled by a charitable foundation, there are also “significant drawbacks”. However, he emphasised preserving EQ Investors’ core values were “paramount” to any decision, and they were only interested in options that “enhance our ability to serve clients more effectively”.
“EQ is a successful and profitable business, so we are under no pressure to conclude a transaction,” he said at the time.
Kennedy noted the investment team has highlighted some significant tailwinds to financial performance in a recent white paper, and will continue with the firm’s aim of “mainstreaming sustainable investing through providing competitive and consistent returns”.
EQ Investors has £1.9bn in assets under management, as at 30 April 2024.
This article originally appeared in our sister publication, Portfolio Adviser