Amundi agrees to pay €350mn for Zurich-based private market multi-manager
European giant joins list of firms boosting alternatives capabilities via acquisition
Amundi CEO says private markets set to benefit from retail investor appetite for real assets
February 7, 2024 (Preqin News) – One of Europe’s largest asset managers, Amundi, is to acquire private markets specialist Alpha Associates, extending a recent trend of large firms expanding their alternatives capabilities via acquisitions of smaller firms.
Amundi, which has an overall AUM of over $2tn, told Preqin News that the firm has agreed to pay €350mn ($376.9mn) for Alpha in a deal that it says will generate a return on investment of above 13% after three years. The acquisition combines Alpha Associates’ €8.5bn in assets under management (AUM), with Amundi’s Paris-based private markets multi-manager unit’s AUM of €12.5bn ($13.5bn).
Amundi said that the two firms’ multi-manager activities in private markets will be combined into a new business line, adding that it expects the deal to be completed by the third quarter of 2024.
The deal follows a trend of mega-firms broadening their private market capabilities through acquisitions. BlackRock announced the purchase of infrastructure specialist Global Infrastructure Partners in January, while Blackstone revealed in the same month that it was taking listed real estate manager Tricon private, and TPG acquired Angelo Gordon for $73bn in November, all finalizing in the last two quarters.
Acquiring Alpha – which has a strong presence in Germany, Switzerland, and Austria – will allow Amundi to ‘significantly broaden its client base, capabilities, and product offering, in a promising market,’ Amundi Chief Executive Officer (CEO) Valérie Baudson said in a statement on Wednesday.
‘Private markets have seen sustained growth in recent years, as investors have increased their allocation to this asset class in their portfolios,’ she said. ‘This segment should also benefit from the appetite of retail investors for real assets investment solutions.’
Fund of funds manager Alpha was founded in 2004, following a spin-out from the management team of Swiss Life Private Equity Partners. The firm’s multi-asset strategy includes private debt, infrastructure, and private equity, and caters to more than 100 institutional investors – including pension funds and insurance companies – particularly in the DACH region.
Peter Derendinger, Founding Partner and CEO of Alpha Associates, said, ‘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. We are excited to work with Amundi’s private markets team, which shares Alpha’s ambition to generate outstanding risk-adjusted performance for clients.’
Catering to retail investors is becoming more attractive to funds after capital raising from traditional avenues slowed. At the same time, the appeal of exposure to asset classes such as private equity and private debt has continued to grow among the investor segment. Regulators in Europe recently revised measures designed to allow smaller investors to commit funds to private markets, while several asset managers have launched products offering greater access to smaller investors.
The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.