MERRION Capital is moving into the structured products business after buying a Dublin-based asset manager. The Ballsbridge-based firm has agreed terms to take over Duggan Asset Management (DAM), which is based in the IFSC.
Duggan was set up in 2005 to sell investments linked to traded securities. Known as structured products, they are usually derivatives based on financial products, such as options to buy or sell assets, commodities, a basket of equities, or bonds.
DAM sold about €350m worth of products and still has around €200m on its books.
The company describes itself as "specialising specifically in the creation of market leading alternative investment strategies invested in asset classes like alternative stock and property markets, hedge funds, private equity, commodities, currencies, environmental markets and other 'exotic' asset classes".
DAM says it is focused on well-heeled private investors and institutional investors, "constructing investment portfolios designed to ... meet each client's investment objectives in a manner that is consistent with each client's attitude to investment risk".
DAM employs four people.
Niall Duggan, who set up the company, said the Central Bank approved the deal in March.
"This agreement is a good one for both companies. It allows DAM to scale up its operations within Merrion, and it gives Merrion access to a structured products division," he added. Mr Duggan and his team have become Merrion employees. Terms of the deal were not disclosed.