Three months after announcing the deal, Swedish asset manager Simplicity has completed its acquisition of Norron’s fund management business, taking over the management of the five UCITS funds within Norron SICAV in Luxembourg. The transaction brings Norron’s two absolute return funds, Norron Long/Short Equity and Norron Multi-Strategy, into Simplicity’s offering, broadening its range beyond its established fixed-income franchise.
“With the acquisition of Norron’s fund management business, we are taking the next step in our development as one of Sweden’s largest independent asset managers, while further strengthening our position in corporate bond fund management,” says Henrik Tingstorp, Deputy CEO and Head of Fixed Income at Simplicity. “We continue to see strong client demand for corporate bond funds, alongside a growing market for the asset class.”
“With the acquisition of Norron’s fund management business, we are taking the next step in our development as one of Sweden’s largest independent asset managers, while further strengthening our position in corporate bond fund management.”
Henrik Tingstorp, Deputy CEO and Head of Fixed Income at Simplicity.
The majority of Norron’s assets under management, just under SEK 7 billion, are held in its two corporate bond funds. Its equity fund and two absolute return funds manage a further SEK 1 billion. Through the transaction, Simplicity becomes the investment manager of Norron SICAV and its five underlying funds. “By combining Norron’s funds with Simplicity’s long-term perspective and organizational capabilities, we are creating a competitive and independent offering, as well as a solid platform for continued growth in Sweden and internationally,” adds Tingstorp.
Following the acquisition, Simplicity’s assets under management have increased to approximately SEK 53 billion, with around SEK 38 billion in corporate bond funds. The firm is already one of Sweden’s largest managers in the segment, and the transaction is intended to further strengthen its position. “The acquisition represents a strategic opportunity to further strengthen this position through an enhanced client offering, increased scale, and complementary expertise that will reinforce the existing fixed income team,” Simplicity says in a press release. Simplicity also has an established equity management business spanning Nordic and international markets, with the acquisition adding further depth to its equity and absolute return offering.
“Simplicity and Norron complement each other well and together form a strong foundation for a leading, independent Swedish asset management platform.”
Frank O. Reite, Board Member of Norron.
Part of the Aker ASA group, Norron has built an established active-management franchise across equities, fixed income and alternative investments. The transaction transfers its fund management activities to Simplicity while supporting Aker’s broader strategy of streamlining its operations. “Simplicity and Norron complement each other well and together form a strong foundation for a leading, independent Swedish asset management platform,” says Frank O. Reite, Board Member of Norron. “Norron has built a robust and well-balanced product offering, supported by a highly skilled team, and the transaction is in line with Aker’s strategy to streamline its operations.”
