Federated Investors has reached an agreement to acquire Prime Rate Capital Management of London, a specialist in cash management and fixed income products. The company also has a family of UCITS, including the Prime Rate Sterling Liquidity Fund, Prime Rate Euro Liquidity Fund and Prime Rate U.S. Dollar Liquidity Fund.
Prime Rate Capital’s money market funds have $2.4 billion in assets under management and are rated AAA by both Fitch Ratings and Standard & Poor’s. Terms of the deal, expected to close in the second quarter, were not disclosed.
“The agreement will incorporate Prime Rate Capital’s experienced team, insightful processes and excellent in liquidity management into Federated’s money market business—with euro, sterling and dollar-denominated UCITS positioning us for future growth,” said Gordon J. Ceresino, president of Federated International Management Ltd. “After adding an additional salesperson in our Frankfurt office earlier this year, Federated continues to seek opportunities to expand our global business in Europe and around the world.”
Federated has $189 billion in money market fund assets under management, giving it a 12% market share of AAA-rated money market funds, according to iMoneyNet.
Lee Barney writes for Money Management Executive.