Tue, Dec 12, 2017
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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. News Briefs - Italy's Carige to sell consumer credit arm to Chenavari, Less than a year after hedge fund coup, East Bay drug maker cuts jobs, looks to move HQ[more]

    Italy's Carige to sell consumer credit arm to Chenavari Italy's Banca Carige aims to sell its consumer credit unit to London-based hedge fund Chenavari by Dec. 6 when a vital 560 million euro ($664 million) cash call ends. Genoa-based Carige must comply by the end of the year with Europe

  3. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  4. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  5. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa