On Wednesday 7 February, Amundi announces it has signed a binding agreement for the acquisition of Alpha Associates, an independent asset manager offering private markets multi-manager investment solutions. This acquisition will position Amundi as a leading European player in this space with a team of over 70 experts, a combined ~€20bn of assets under management, an enhanced multi-manager offering spanning across private debt, infrastructure, private equity and venture capital, and an enlarged client & geographical footprint. It will also reinforce the presence on secondary transactions, which is a relevant capability in the current market.
The transaction increases Amundi’s offering of private markets funds and tailor-made solutions for its existing institutional clients globally. Finally, it accelerates the development of suitable private markets products for individual clients.
A combination of two complementary platforms
Founded in 2004, Alpha Associates is a Zurich-based, founder-led, specialist in private markets multi-manager solutions, which currently manages €8.5bn of assets. Alpha Associates brings differentiating funds-of-funds capabilities in private debt, infrastructure, and private equity, to over 100 institutional investors, notably pension funds and insurance companies, with a strong footprint in Switzerland, Germany, and Austria.
These capabilities will be combined with the existing private markets multi-manager set-up of Amundi: a dedicated Paris-based team with over 20 years of experience, currently managing €12bn of assets on behalf of institutional clients, mainly in France, Italy and Spain.
As part of the transaction, Amundi’s and Alpha Associates’ multi-manager activities in private markets will be combined into a new business line.
An expanded offering in a high growth segment benefiting from long-term trends
Private markets have been one of the most dynamic areas of asset management in the past years, as investors are looking to diversify their portfolio with an alternative asset class that has proven to provide attractive returns with moderate volatility over the cycle.
Multi-manager offerings are well suited to accompany investors on this path, as they provide access to a broader range of management skills, hence enhanced diversification and improved risk profile. Thereby, multi-manager investment solutions should also allow to offer real assets products to an underinvested retail client segment.
A transaction creating substantial value
This transaction, compliant with Amundi’s financial discipline, and in line with its strategic plan, will be significantly value accretive thanks to revenue synergies and strong growth potential. The return on investment will be above 13% in year 3 including revenue synergies.
The transaction is expected to be completed by the third quarter of 2024, subject to regulatory approvals.