Financial Results

GAM Holding Investor Group Provides Financing Up To SFr100 Million

Editorial Staff 27 September 2023

GAM Holding Investor Group Provides Financing Up To SFr100 Million

The investors that are part of a group involved with Swiss firm GAM Holding have announced new financing. GAM's fortunes have been under pressure for years following the firing of a senior manager.

One of the investor groups pushing to take over Zurich-listed GAM Holding has announced that it intends to provide the embattled asset manager with a blend of short- and long-term funding up to an increased total of SFr100 million ($1.09 million). 

The funding announcement came from Rock Investment SAS ("Rock"), a member of the investor group NewGAMe – made up of Newgame SA and Bruellan SA – which controls about 9.6 per cent of GAM’s issued share capital.

Rock has already provided SFr20 million in short-term financing to cover GAM’s immediate liquidity needs. The additional support announced yesterday is subject to NewGAMe’s proposed directors being elected at GAM’s extraordinary general meeting today, but is not contingent on the outcome of any other EGM proposals, a statement said.

NewGAME has also proposed Swiss citizen Elmar Zumbuehl as CEO of GAM. Zumbuehl joined the firm in 2010 as GAM’s global chief risk officer and member of its group management board. Before GAM, he worked at Julius Baer, including covering its asset management arm, of which GAM was part at the time.

The story of GAM Holding’s corporate fate has been a tortuous one. After announcing that it was considering buying GAM in April this year, in August London-listed Liontrust Asset Management said it had not been able to secure sufficient shareholder approval for the bid. 

Liontrust’s takeover move for GAM, had been a contentious process, criticised by investors who challenged the price and logic of the deal. GAM has been battling to recover since Tim Haywood, who managed the ARBF business, was suspended in 2018 amid claims of misconduct (he was subsequently dismissed). Clients pulled money out of the firm. GAM was also hit by the selloff in global markets during 2022. It reported interim 2023 financial results here.

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