Fri, Mar 6, 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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi

  5. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He