The Navigator Global Investments Ltd (ASX: NGI) share price skyrocketed 39.35% in Thursday's trading. That came on a day where the All Ordinaries Index (ASX: XAO) slumped 0.6%.
That will come as welcome news to shareholders, who watched the Navigator share price plummet 67% from17 February through 28 April. Since then, the share price of the alternative investment manager has regained 63%, though year-to-date Navigator shares remain down 31%.
At its current price of $1.93 per share, Navigator Global has a market cap of $312 million.
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What does Navigator Global do?
Navigator Global Investments provides alternative investment management products and services to investors around the world via Lighthouse Investment Partners, LLC. Based in the United States, Lighthouse creates and manages global hedge fund solutions with a focus on diversification and absolute return.
What sent the Navigator share price flying today?
Navigator released an announcement to the ASX on Thursday morning stating that it had entered into a definitive agreement to acquire a portfolio of strategic investments from funds managed by Dyal Capital Partners. Dyal is a division of Neuberger Berman.
The portfolio is comprised of a diversified group of established firms with a history of delivering results through numerous market cycles. The firms manage a combined US$35 billion (AU$49 billion) of assets under management across 26 diversified investment strategies.
Management commentary
Navigator's chair Michael Shepherd said:
We believe this is a compelling transaction with strong commercial logic. The acquisition is an important development in the evolution of Navigator. We have long targeted high-quality opportunities to grow and diversify our holdings to generate strong long-term shareholder returns. We are excited to be invested with these six excellent businesses.
Dyal has established themselves as the pre-eminent partner to growing alternative asset managers globally. We are excited to partner with the Dyal team and welcome their expertise as we grow the company over time.
Michael Rees, head of Dyal Capital, added:
Dyal looks forward to an ongoing involvement with Navigator as a long-term partner of the company. We are happy that these six managers will remain part of the Dyal ecosystem and view our indirect interest in the Lighthouse business as an attractive addition which is expected to contribute positively to our investment in the years to come.
Navigator stated that it expects to complete the transaction between December 2020 and January 2021. It remains subject to shareholder approval.
After gaining nearly 40% on the announcement, the Navigator share price will be one to keep an eye on throughout Friday.
