Azimut Holding signs agreement to launch in the Brazilian market
Italy’s Azimut and Brazilian Legan Administração de Recursos have signed an investment and shareholders agreement to start a partnership in the Brazilian asset management market.
Legan is an asset management company with R$440m AUM (€141m).
Legan, founded by five partners with 20 years’ experience in the Brazilian financial industry, counts 14 people providing asset and wealth management services to around 3,000 clients.
The company’s flagship funds, Legan Low Vol – a low volatility arbitrage fund investing in several asset classes including interest rates, derivatives and sovereign debt to provide returns in excess of the CDI, the Brazilian short term interest rate – and Legan Special – an arbitrage fund focusing on several asset classes with up to 20% of the portfolio invested in directional trades, long/short equity – have been ranked among the best Brazilian funds in their categories by Standard & Poor’s, Institutional Investor and Exame.
The Brazilian asset management industry has AUM of USD1,057bn, €803bn, of which is invested in fixed income and balanced funds, with around 400 independent asset-managing firms registered with the CVM (the Brazilian Securities and Exchange Commission).
Azimut and Legan will cooperate to grow the existing business by increasing the product range, including equity funds., Azimut said.
Subject to the regulatory approval by the competent authorities, AZ International Holdings will purchase 50% of a Brazilian holding company controlling the entire equity capital of Legan.
The purchase of the 50% stake in the Brazilian holding company will entail an acquisition from the founding partners (for a cash consideration of around €3m) and the subscription of a capital increase (for a countervalue of around €2.5m) to finance the business plan.
André Mamed, Fabio Veiga, Airton Kelner, Fausto Gouveia and Ivan Kraiser, Founders of Legan, commented: “Partnering with Azimut will allow Legan to further improve its structure, consolidating our commitment to provide clients with consistent and above benchmark returns.
“The JV, will enable us to strengthen our team with leading professionals enhancing our presence also internationally.”
Pietro Giuliani (pictured), chairman and CEO of Azimut Holding, said: “After a thorough analysis and scouting of the Brazilian market we are proud to announce the JV with Legan, one of the most talented independent boutique in the local asset management industry.”