Amundi, Europe’s biggest asset manager, on Wednesday confirmed that it has agreed to acquire Alpha Associates, a Swiss-based specialist firm in private equity, private debt and infrastructure investments, boosting its presence in the European private markets sector. Financial details were not disclosed.
The acquisition is expected to boost Amundi’s assets under management to approximately 20 billion euro and will add a team of over 70 professionals. The increase in assets will be accompanied by an expanded team of over 70 professionals. Amundi has some 2,000 billion in assets under management and employs about 5,400 people in 35 countries.
Founded in 2004, Alpha Associates is a Zurich-based, founder-led, specialist in private markets multi-manager solutions, which currently manages 8.5 billion of assets. Alpha Associates brings differentiating funds-of-funds capabilities in private debt, infrastructure, and private equity, to over 100 institutional investors, notably pension funds and insurance companies, with a strong footprint in Switzerland, Germany, and Austria.
New business line
These capabilities will be combined with the existing private markets multi-manager set-up of Amundi: a dedicated Paris-based team with over 20 years of experience, currently managing 12 billion of assets on behalf of institutional clients, mainly in France, Italy and Spain. As part of the transaction, Amundi’s and Alpha Associates’ multi-manager activities in private markets will be combined into a new business line, the firms said.
The transaction is designed to enhance Amundi’s multi-manager offerings across private debt, infrastructure, private equity, and venture capital. Additionally, the acquisition is anticipated to broaden Amundi’s client base and geographic reach, while also bolstering its capabilities in secondary market transactions.
Commenting on the deal, Amundi’s CEO Valerie Baudsone referred to an increasing allocation of private assets. “This segment should also benefit from the appetite of retail investors for real assets investment solutions,” she said, adding that the acquisition will allow Amundi to “create substantial value for our clients and shareholders”.
Multi-manager model
Private markets have emerged as a rapidly growing segment in asset management, offering investors an alternative asset class with attractive returns and moderate volatility. The multi-manager model, a key aspect of Alpha Associates› approach, provides investors with diverse management skills, leading to better diversification and improved risk profiles, Amundi said. This model is particularly effective in addressing the needs of the underinvested retail client segment.
Peter Derendinger, founding partner and CEO of Alpha Associates, who will head the combined business declared: “We are pleased to join Amundi, a major global player in the asset management industry, and play an important role in Amundi’s plan to accelerate its footprint in the private markets segment.”
Amundi expects the transaction to be highly value accretive, aligning with its financial discipline and strategic plans. The projected return on investment surpasses 13% in the third year, inclusive of revenue synergies. The completion of the acquisition is scheduled for the third quarter of 2024, pending regulatory approvals.
Dominique Carrel-Billiard, Head of Alternative and Real Assets at Amundi, expressed enthusiasm for the integration of Alpha Associates› teams. “The multi-manager model is one that offers strong resilience thanks to diversification in terms of asset classes and management companies. In addition to the significant growth potential for the institutional clientele, it is also adapted to address the retail market,” he said.
The transaction is expected to be completed by the third quarter of 2024, pending regulatory approvals.