The UK firm is acquiring a business that serves the non-profit sector, and which has chalked up a compound annual growth rate of AuM of more than 10 per cent for the past decade.

London-listed Jupiter Fund Management announced yesterday that it will be acquiring CCLA Investment Management, a firm managing more than £15 billion ($20.5 billion) in AuM, pending regulatory and shareholder approval. CCLA serves non-profit organisations such as charities, religious institutions and local authorities.

Jupiter has agreed to acquire all CCLA’s share capital for £100 million, subject to customary post-closing adjustments, funded entirely from existing balance sheet cash resources, it said in a statement.

Shares in Jupiter were up almost 11 per cent on the day around 14:00 local UK time on Thursday; since the start of 2025, they’ve risen more than 39 per cent.

The acquisition is expected to be materially accretive to Jupiter’s management fee earnings immediately. The initial target for run-rate cost synergies on a fully-integrated basis is at least £16 million per year; this target is expected to be fully realised by the end of 2027, it said.

The deal is yet another example of the kind of asset and wealth management M&A activity that has been going on in the UK and wider world in recent months and years. See here for a discussion of what is driving part of this trend.

“The acquisition marks a significant step forward in delivering on Jupiter’s key strategic objective of increasing scale, specifically within its home market of the UK,” Jupiter said. The transaction also opens a new client channel.

Jupiter, which on 22 May laid out further cost efficiency potential, said the deal will help deliver its medium-term target cost/income ratio of 70 per cent.

 The firm also said it plans to make another capital distribution regarding half of performance fee-related revenue for the 2025 financial year.

“The market-leading and well-respected CCLA brand will be maintained, and we will together continue to deliver the same exemplary levels of service to CCLA’s clients,” Jupiter’s CEO said. “This acquisition helps us to increase scale in our home market of the UK, where Jupiter is already a leading player, without any disruption to our existing clients. It opens a new client segment for us, broadening our appeal to a range of charitable and religious institutions, both in the UK and internationally, while also allowing us to expand our existing presence in the UK local authority sector.”

Peter Hugh Smith, chief executive of CCLA, said: “Through this partnership, our clients will continue to receive the same market-leading client service and relentless focus on strong, sustainable investment returns. At the same time, we will now benefit from Jupiter’s technology and operational infrastructure, its broad range of investment capabilities and extensive global distribution footprint.”

Explaining its transaction, Jupiter said CCLA has “consistently delivered strong organic growth.” 

Established in 1958, CCLA has generated net inflows into long-term funds each of the last 15 calendar years, with cumulative net inflows of £4.3 billion since 2015 (excluding short duration and money market funds, and segregated mandates). Total AuM has grown materially, with a compound annual growth rate of more than 10 per cent since 2015. For the financial year ended 31 March 2025, CCLA generated £66 million of revenue and just under £13 million of underlying operating earnings.