Amundi has announced it has signed a binding agreement for the acquisition of Alpha Associates, an independent private markets multi-manager.
The acquisition will give Amundi a team of more than 70 experts, a combined €20bn of assets under management, an enhanced multi-manager offering spanning across private debt, infrastructure, private equity and venture capital, and an enlarged client and geographical footprint, it said this morning.
It will also reinforce the presence on secondary transactions, which is a relevant capability in the current market, the firm added.
The transaction increases Amundi’s offering of private markets funds and tailor-made solutions for its existing institutional clients globally. Finally, it accelerates the development of suitable private markets products for individual clients.
Valerie Baudson, Amundi’s chief executive officer, said: “Within the asset management industry, private markets have seen sustained growth in recent years, as investors have increased their allocation to this asset class in their portfolios.”
She added that the acquisition of Alpha Associates will allow Amundi to “significantly broaden its client base, capabilities, and product offering, in a promising market”.
She said: “This move, which is fully in line with our strategic objective to increase our footprint in alternative and real assets in Europe, will allow us to create substantial value for our clients and shareholders.”
Alpha Associates, a Zurich-based private markets specialist founded in 2004 currently managing €8.5bn, brings differentiating funds-of-funds capabilities in private debt, infrastructure, and private equity, to more than 100 institutional investors, notably pension funds and insurance companies, with a strong footprint in Switzerland, Germany, and Austria.
These capabilities will be combined with Amundi’s existing private markets multi-manager set-up, which includes a dedicated Paris-based team with more than 20 years of experience, currently managing €12bn of assets on behalf of institutional clients, mainly in France, Italy and Spain.
As part of the transaction, the duo’s multi-manager activities in private markets will be combined into a new business line. Peter Derendinger, founding partner and CEO of Alpha associates, will head the combined business.
“Private markets have been one of the most dynamic areas of asset management in the past years, as investors are looking to diversify their portfolio with an alternative asset class that has proven to provide attractive returns with moderate volatility over the cycle,” Amundi stated.
“Multi-manager offerings are well suited to accompany investors on this path, as they provide access to a broader range of management skills, hence enhanced diversification and improved risk profile”, the firm continued.
The transaction will bring significant value to revenue synergies and strong growth potential. The return on investment will be above 13% in year three including revenue synergies, Amundi said.
The transaction is expected to be completed by the third quarter of 2024, subject to regulatory approvals.
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