Gottex acquires stake in multi-asset boutique Frontier
Gottex Fund Management is to take a majority stake in UK multi-asset boutique Frontier Investment Management.
Gottex, a global firm with $7bn of assets, will acquire the majority of the share capital of Frontier, which has $550m of AUM across its range.
Michael Azlen, founder and CEO/CIO of Frontier, will retain a substantial equity interest in the business and will continue to lead it. He will also join Gottex as a senior executive in its multi-asset business.
He will take on the responsibility for expanding Gottex’s European multi- asset business, starting from Frontier’s UK base. Frontier will continue to offer its current product range, which will be augmented globally by a range of actively managed multi-asset products.
Azlen will report to Bill Landes, global CIO of Gottex’s multi-asset business.
The consideration involves a combination of Gottex shares (up to 450,000 at the current share price) and additional cash, payable over a period of two years and adjusted for Frontier’s future revenues.
The combination of Frontier with Gottex’s multi- asset business will create a complete range including liquid, low cost index replicating portfolios to actively managed multi- asset funds.
In addition, Frontier’s liquid and UK regulated investment products combined with Gottex’s existing active approach to macro markets will allow the combined firm to offer products globally. Gottex will also be able to take advantage of Frontier’s retail distribution in the UK through its established IFA channels.
Landes said: “At Gottex, we firmly believe alternatives oriented multi- asset investing is an area of enormous strategic potential for the asset management industry in both the short and long term.
The combination of Gottex and Frontier establishes one of the leading alternatives oriented multi-asset investment teams, which will allow us to offer our clients an enhanced range of investment solutions in this fast growing area.”
The deal is subject to regulatory approval.
This article was first published on Investment Week