Opalesque Industry Update - Gottex Fund Management Holdings Limited (Gottex) and EIM Group (EIM), two leading alternative investment managers, announce today they have reached agreement on the proposed merger of their businesses, subject to certain conditions including approval of Gottex shareholders. The transaction will establish a truly global investment management company with headquarters in Switzerland and offices in London, Boston, New York, Hong Kong and Shanghai. The fee earning assets of the combined group will be close to USD 10 billion by the first half of 2014, spanning across its investment, advisory and risk management solutions.|
By combining two leading investment firms, both groups are taking a natural step towards the goal of becoming a substantial diversified asset manager of significant scale. This platform for growth, with deeper and broader capabilities, will allow the combined group to provide its clients with premier solutions in Multi-asset, Multi-manager and Asia-focused investments as well as risk and infrastructure services.
The all-share transaction is based on an exchange of shares where the EIM shareholders will receive up to 14 million newly issued Gottex shares. Gottex shareholders would own approximately 70% of the enlarged group and EIM shareholders approximately 30%. The transaction will be subject to approval of relevant regulatory authorities, as well as Gottex shareholders with regards to the issue of the new shares. Gottex and EIM believe the combination will lead to substantial operational synergies, largely through the combination of offices and systems, achieving a meaningful positive operational result once synergies are fully achieved and which should be accretive on a per share basis 12 months after completion.
Commenting, Joachim Gottschalk, Chairman and Chief Executive Officer of Gottex, stated: “We are very pleased to have reached agreement with EIM to merge our two enterprises, which will bring increased scope, economy of scale and growth opportunity to the combined entity. Our global reach and combined investment and risk management teams will offer our valued clients enhanced services and solutions for their alternative investments, risk monitoring and multi asset allocations.”
Commenting, Arpad Busson, Chairman of EIM, added: “We are proud of the merger of the EIM Group with Gottex. I have personally known Joachim Gottschalk, Gottex’s founder, for over 20 years as we both started our respective companies in the early days of the alternative investment industry. Our relationship has always been based on mutual respect and admiration. Combining our respective businesses will enable us to create a major industry player with a global footprint, built on a vibrant solutions platform offering investments in alternative and traditional strategies aimed at institutional and private investors around the world. I am convinced that this combined entity will provide us with the necessary resources to meet the growing demand of our investors and global regulators.”