Sienna Investment Managers acquires Italian private debt specialist Ver Capital

April 4, 2024 (Preqin News) – European alternatives manager Sienna Investment Managers has extended its recent string of acquisitions with the addition of Milan-based private debt specialist Ver Capital.

The transaction will provide Paris-headquartered Sienna’s clients with access to Ver Capital’s experience in European high-yield leverage loans, and the Italian private debt market. The tie-up will bring the two entities’ combined private debt AUM to approximately $3bn. Sienna had a total AUM of €34.1bn ($37.1bn) as of December 2023.

Founded in 2013, Sienna has embarked on a strategy of developing itself as a ‘pan-European, multi-expertise asset management firm’. The firm bought alternatives and real asset manager L’Etoile Properties for $7bn in 2021 and acquired private credit manager Acofi Gestion in 2022. It also launched a private equity fund in October 2023 with a team of six spun out from Oaktree Capital Management.

Sienna CEO Paul de Leusse told French newspaper L’Agefi in December 2023 that his firm will be ‘making more acquisitions’.

In addition to wider product exposure, the deal also increases the European reach of Sienna, a subsidary of Groupe Bruxelles Lambert, to eight countries. with a ninth location in South Korea.

‘By joining forces, we will have the scale needed in both countries to offer a particularly large range of products and services, and to benefit French and Italian clients from our presence in Europe,’ de Leusse, said in a statement announcing the latest deal.

Private market firms have stepped up acquisitions to expand their capabilities amid increasing investor demand for alternative assets. Among recent activity, TPG finalized the purchase of Angelo Gordon in November 2023 for $2.7bn, BlackRock announced the acquisition of Global Infrastructure Partners in January, and Amundi revealed in February that it has purchased Alpha Associates for €350mn ($380.4mn).

Private debt has emerged as a popular asset class among investors, boosted by a retreat by traditional lenders and a rising rate environment. The number of debt funds launched in Europe increased from 21% of the global total in 2022 to 33% in 2023, according to Preqin’s 2024 Global Report: Private Debt, although their share of capital raised fell slightly from 28% to 24%.

‘We are very excited to kick off the partnership with the Sienna Group that will mark a new chapter for Ver Capital, with a more international perspective and with the aim to create a comprehensive international platform in the European credit space with a solid experience and track records in our relevant sectors,’ Andrea Pescatori, CEO of Ver Capital, said.