Azimut Group launches in Mexico’s AM industry
Italy’s independent asset manager Azimut has signed a joint venture agreement to acquire 82.14% of Profile S.A., which owns Mexican independent asset manager Más Fondos.
At the same time, Azimut signed an investment and shareholders agreement with the current management team of Más Fondos to develop the business in the future.
Más Fondos distributes third party funds and has asset under custody equal to Ps$ 7.1bn (equivalent to €404m) as of 31st May 2014.
Más Fondos, founded in 2002 by a group of two Mexican corporations and the current management team with extensive experience in the Mexican financial industry, operates as a comprehensive distributor of investment funds having agreement with 12 local mutual fund houses and a market share of 10.4% as of May 2014.
The company has also developed the leading system for fund analysis in Mexico called ARYES. Currently, Más Fondos has around 22,000 accounts and more than 4,100 active clients, with presence in Mexico City and
4 other major cities employing approximately 65 people, 38 of which in the sales force.
The Mexican asset management industry has Ps$ 1,712bn in AUM as at May 2014 (€100bn, of which 90% is invested in fixed income and 5% in equity funds) with a +15% CAGR in the last 11 years.
Banks are the largest and most dominant player in the local industry with a market share of 90% as at December 2013 with a very high level of concentration (top 5 banks account for 59% of the market).
Subject to the regulatory approval by the competent authorities, Azimut, through AZ International Holdings S.A., will purchase from its existing shareholders 82.14% of Profie S.A. for around € 6mn.
The minority stake will be retained by the managers. Azimut and Más Fondos’ current management team will cooperate to grow the business in Mexico over the medium-long term and, to this end, have agreed to subscribe a capital increase for around €2m to finance the business plan.
Álvaro Mancera, Partner and CEO of Más Fondos, commented: “With the arrival of Azimut to Mexico, Más Fondos will consolidate its presence as the leading mutual fund distributor in the country.
“Azimut success story, resting on an extraordinary ability to innovate and develop efficient and motivated sales forces, leaves no doubt we are joining forces with the best partner that will bring new dynamics and higher competitive standards to the Mexican market.”
Pietro Giuliani (pictured), Chairman and CEO of Azimut Holding, added: “Today we announce an important JV with a strong partner in a very attractive market. The JV with Más Fondos allows us to leverage on a well structured distribution model to increase our footprint in Latin America with an open door to potential opportunities to grow in North America.
“We remain fully committed to further develop our international presence in order to bring Azimut expertise in asset management and distribution to work closely together with local professionals.”