Asset manager Redwheel has moved to expand into the US with the buyout of sustainable asset manager Ecofin for an undisclosed price.
Ecofin, which currently has $1.4bn (£1.1bn) in assets under management, mainly invests in companies focused on electrification, decarbonisation, and sustainable infrastructure.
While the company has several UK funds and two London-listed investment trusts, the majority of its clients are in North America., with Redwheel chief executive Tord Stallvik saying that the deal would “deepen our presence in the US”.
“We are excited to join Redwheel and we look forward to the opportunities this partnership offers to us and our clients,” said Ecofin president, Brent Newcomb.
“Our team will bring to Redwheel our proven expertise in investing in companies that are enabling systematic decarbonisation of the economy.
“We have found compatible cultures and a shared ambition for the fundamental growth opportunities catalysed by the global transition to more sustainable economies.”
Redwheel’s ESG-focused arm, Greenwheel, currently manages around $100m in assets under management.
“The Ecofin team is one of the longest standing specialists focused on sustainable infrastructure and related transition strategies”, added Stallvik.
“Their expertise is complementary to our existing thematic sustainability capabilities and is aligned with our overall focus on fundamental, long term specialist investment strategies.
“The Ecofin team will benefit from Greenwheel, the sustainability ecosystem that powers our firm’s enhanced integration, transition and sustainable funds, and Ecofin’s extensive knowledge will broaden Greenwheel’s reach. We are pleased that the team recognizes the benefits of the long-term alignment that Redwheel offers.”
The firms expect the transaction to close in the third quarter.