Own Magellan (ASX:MFG) shares? A $5b competitor could be hitting the ASX

Asset manager GQG Partners is reportedly contemplating listing on the ASX before the year’s end.

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A man watches his back, as his competitor could be coming up behind him.

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Owners of Magellan Financial Group Ltd (ASX: MFG) shares might want to brace for new competition as reports of GQG Partners‘ plan to list on the ASX emerge.

Right now, the Magellan share price is $42.48, having gained 0.3% today.

Let’s take a closer look at GQG Partners’ rumoured debut and compare the 2 asset managers.

Holders of Magellan shares beware: GQG Partners reportedly plans its IPO

Holders of Magellan shares might want to keep an eye out for upcoming initial public offerings (IPOs) as GQG Partners is reportedly planning to debut on the ASX before the end of 2021.

According to the Australian Financial Review (AFR), GQG Partners plans to front up to Magellan with an IPO worth more than $5 billion.

GQG Partners is an asset manager with most of its operations in the United States. Though, it has an office in both London and Sydney.

The fund has more than $82 billion of assets under management and provides its services to more than 778 organisations.

The AFR claims GQG Partners manages assets for Australia’s AustralianSuper, Rest Super and Cbus.

GQG is said to believe that listing on the ASX will boost its brand recognition among Australian investors.

How Magellan compares

Magellan shares might be shaking in their boots on news of a comparable asset manager’s planned IPO.

According to the AFR, GQG Partners likely believes it’s a better investment than Magellan due to its growth profile.

The publication states the firm’s assets under management have grown by nearly 100% since this time last year.

For comparison, Magellan reported its funds under management increased 9% in FY21. As of 30 June 2021, the ASX-listed fund was charged with managing $103.7 billion worth of assets.

Additionally, Magellan’s profits dropped 33% over the financial year just been.

The market reacted to the drop as one would expect. Magellan’s shares fell 10% on the back of its FY21 earnings.

Thus, it’s likely a bad time for Magallan, and those who own its shares, to learn a competitor might soon be encroaching on its block.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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