Liontrust sells loss making credit arm to Avoca for £3.2m

Liontrust Asset Management has agreed the sale of its credit team and transfer of two of its credit funds to credit investment manager Avoca Capital.

The group says in an announcement that it has entered into a conditional business purchase agreement for the sale of its credit business, including its five-person credit team led by Simon Thorp, to Avoca. The Liontrust Credit Absolute Return fund and the Liontrust Credit fund, which have £85m in assets under management in total, will be transferred to Avoca as part of the deal. Liontrust is to receive 3.75% of the assets under management transferred as payment, totalling £3.2m. The credit business, worth 6% of Liontrust's total assets under management, is currently loss making. ...