18. Impax Asset Management Group Plc
Green Investing
Focused on a sustainable future, Impax Asset Management Group Plc manages investment funds that target opportunities in the transition to a low-carbon economy, based in London. Operating in the asset management industry – with a niche in sustainable investing – the company caters to institutional and retail clients seeking to align their investments with environmental, social, and governance (ESG) principles.
Impax generates revenue by managing assets for clients, charging fees based on the value of assets under management (AUM). It invests in companies driving climate solutions, such as renewable energy firms, water management businesses, and sustainable food producers, across asset classes like listed equities, fixed income, and private markets. Clients pay annual management fees – typically a percentage of AUM, often around 0.5% to 1% – and sometimes performance fees if returns exceed benchmarks. Impax also earns through strategic partnerships, such as a recent investment advisory agreement with BNP Paribas Asset Management Europe, where it provides services for a fund and collects fees based on the fund’s AUM. In 2024, Impax expanded its fixed income offerings by acquiring the European assets of SKY Harbor Capital Management, adding £1.1 billion to its AUM and bringing its total fixed income assets to £2.6 billion.
However, Impax has faced significant challenges recently. Its AUM dropped 26% in the first three months of 2025, falling from £34.1 billion to £25.3 billion, largely due to losing a £5.1 billion mandate from St James’s Place and closing several institutional accounts. This led to a profit warning in April 2025, with full-year profits expected to fall below market forecasts, exacerbated by global market uncertainty from an escalating trade war. The company’s stock price has plummeted nearly 90% over the past three years, hitting an eight-year low of 121p in April 2025, though a recent 13% uptick offers some hope. Employing around 300 people, Impax laid off 10% of its staff in 2024 to cut costs amid these pressures.
Despite the turbulence, Impax’s focus on sustainability keeps it relevant in a world increasingly prioritising ESG investing. Its recent partnership with BNP Paribas and expansion into fixed income signal growth potential, but it must navigate market volatility, client retention challenges, and a competitive landscape to regain its footing.
Impax has enjoyed a stellar run as a listed business, but the past few years have brought significant challenges. The shift towards green investing was a major tailwind – but Impax is no longer the only game in town. A growing number of specialist managers, along with in-house ESG teams at larger firms, now compete for the same capital. That’s weakened the strength of Impax’s proposition, particularly in an environment of persistent fee pressure.
At the time of writing, the shares trade on a PE of just 4, apparently yield 20%, and sit close to book value. The market is clearly sceptical about the company’s future – but the valuation is cheap enough to justify further investigation by Wonder Stocks, even if not a full Deep Dive.
