Manager Research

Electus recently announced that Citadel Wealth Management will be buying a 30% stake in the business. Electus has also been selected to manage long only and hedge fund assets for clients on behalf of Citadel.

In our view this is a positive development from a business sustainability perspective for Electus. They have faced material key client risk in Nedgroup, so broadening their client base and having a shareholder that could provide balance sheet support if needed is positive. Long term alignment with clients is also maintained with staff still owning 70% of the business.

While the announcement is encouraging, we will have to monitor the impact of the structure change over time and have therefore decided to leave our rating on their fund unchanged.