Jupiter shares rise on £100m CCLA acquisition
Jupiter Fund Management has snapped up CCLA Investment Management for £100m, subject to regulatory approvals.
The deal will add £15bn in assets under management, run on behalf of charities, religious institutions and local authorities, when it completes before the end of 2025.
CCLA will retain its brand, investment teams and client engagement model to ensure client continuity.
Jupiter said in a statement the move is part of its strategic objective to increase scale within the UK home market, and open up new client channels. It also highlighted there is a high degree of cultural alignment between the two firms.
Matthew Beesley (pictured), CEO of Jupiter, said: “CCLA is the leading asset manager in the UK for the non-profit sector, providing exemplary client service and high-quality investment outcomes for charities, religious organisations and local authorities, and we are delighted that they will become part of Jupiter. The market-leading and well-respected CCLA brand will be maintained and we will together continue to deliver the same exemplary levels of service to CCLA’s clients.
“This acquisition helps us to increase scale… without any disruption to our existing clients. It opens up a new client segment for us, broadening our appeal to a range of charitable and religious institutions, both in the UK and internationally, while also allowing us to expand our existing presence in the UK local authority sector. Importantly, Jupiter and CCLA share a common set of values, and each has a client-centric culture and history of focusing on active and differentiated investment solutions.”
A statement added the acquisition is expected to boost management fee earnings per Jupiter share from day one with further accretion over time. CCLA generates annualised business revenues of £66m, with a management fee margin of 44bps, and an operating profit of £11.4m, according to Peel Hunt.
The initial target for run-rate cost synergies on a fully integrated basis is at least £16m per annum, with this target expected to be fully realised in 2027. The purchase also includes downside protection through a purchase price adjustment mechanism linked to changes in CCLA’s run-rate revenues between signing and completion. With CCLA’s AUM being £15m, the acquisition price equates to 0.7% of AUM or 11.6x run-rate earnings.
In a research note, Stuart Duncan and Stephen Payne at Peel Hunt wrote: “Jupiter’s shares have performed strongly in recent weeks, partly reflecting the previously announced £15m of cost synergies. This acquisition looks to be a sensible use of excess capital, and the increased capital return should be well received. Prior to any accretion, the stock trades on an EV/EBIT of 7x. We intend to review our forecasts and target price in due course, with an upward revision in both expected.
Shares in Jupiter rose almost 12% in early morning trading on the back of the news. Ben Yearsley, investment consultant at Fairview Investing, commented: “The market seems to like it. And to be honest it’s a bolt-on so a reasonable fit for most asset managers as its a specialist business.”
Matt Wiles, head of research at EQ Investors, said: “It’s an Interesting one – not two businesses I would’ve thought to put together, but the logic seems to make sense and could be complimentary, combining Jupiter’s strength in retail with CCLA’s expertise in institutional/charities. As ever, the key will be in effective execution.”
Also reacting to the acquisition announcement, Bev Shah, co-CEO of City Hive, said: “The fact that both firms are ACT signatory firms signals a shared commitment to transparency, accountability, and a healthy workplace culture. This alignment is not just symbolic – it’s a strong indicator of a successful corporate partnership. Firms that prioritise culture from the outset understand that it’s foundational to the success of any M&A activity.”
Peter Hugh Smith, chief executive of CCLA, also commented on the deal: “We are delighted to be becoming part of Jupiter, a leading active asset manager, with strong roots in responsible investment and a shared investment culture and client-centric approach. Through this partnership, our clients will continue to receive the same market-leading client service and relentless focus on strong, sustainable investment returns.
“At the same time, we will now benefit from Jupiter’s technology and operational infrastructure, its broad range of investment capabilities and extensive global distribution footprint. We are grateful for the trust placed in us by our clients over the last six decades and I, along with my senior management team, now look forward with renewed confidence to what can be achieved in the years to come.”
Jupiter had £59bn in AUM as at 31 March 2025.
This article originally appeared in our sister publication, Portfolio Adviser