Sat, Jul 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Gottex acquires Frontier Investment Management

Wednesday, March 20, 2013
Opalesque Industry Update - Gottex Fund Management Holdings, an independent global alternative asset management group with USD 7.0 billion in fee-earning assets, has announced that it has reached agreement on the acquisition of a majority interest in Frontier Investment Management (Frontier), one of the leading multi-asset investment management firms in the UK. Michael Azlen, founder and CEO/CIO of Frontier, will retain a substantial equity interest in Frontier, as well as continuing to lead the Frontier business, and join Gottex as a senior executive in its multi-asset business.

Gottex has agreed to acquire the majority share capital of Frontier, a profitable multi-asset investment manager with USD 550 million of assets under management across a range of liquid low cost multi-asset products. The consideration involves a combination of Gottex shares (up to 0.45 million at current share price) and additional cash, payable over a period of two years and adjusted for Frontier’s future revenues.

Gottex expects the acquisition to be accretive on an operational profit as well as on a fully diluted earnings per share basis within one year, partly due to expected synergies. Completion of the acquisition is subject to certain conditions, including regulatory approval. Gottex believes the acquisition provides compelling strategic benefits, including establishing one of the leading alternatives oriented multi-asset investment teams as well as complementing Gottex’s traditional fund of hedge funds business with a direct investment multi-asset capability. The combination of Frontier with Gottex’s multi-asset business will create a complete range of multi-asset investment capabilities from liquid low cost multi-asset index replication portfolios to actively managed multi-asset funds.

In addition, Frontier’s liquid and UK regulated investment products combined with Gottex’s existing active approach to macro markets will allow the combined firm to offer products globally. Gottex also believes it will be able to benefit from access to Frontier’s retail distribution in the UK through its well-established IFA channels.

Michael Azlen will take on the responsibility for expanding Gottex’s European multi-asset business, starting from Frontier’s strong UK base. Frontier will continue to offer its current product range, which will be augmented globally by a range of actively managed multi-asset products. Mike will report to Bill Landes, Global CIO of Gottex multi-asset business.

Bill Landes, commented, “At Gottex, we firmly believe that alternatives oriented multi-asset investing is an area of enormous strategic potential for the asset management industry in both the short and long term. The combination of Gottex and Frontier establishes one of the leading alternatives oriented multi-asset investment teams, which will allow us to offer our clients an enhanced range of investment solutions in this fast growing area.”

Michael Azlen, founder and CEO/CIO of Frontier, commented, “I am excited to join forces with Gottex and to work with its strong team of highly regarded professionals. Gottex provides a global institutional asset management platform with strong investment processes that will allow Frontier’s product line to grow and achieve its potential.”

Joachim Gottschalk, Chairman and CEO of Gottex, commented, “We are very pleased to welcome Frontier’s team and clients to Gottex. Our increased presence in the multi-asset investment space combined with our global footprint and infrastructure will provide a strong platform for growth in this exciting investment space.”

press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner