Paris-headquartered Natixis has announced exclusive negotations for the acquisition of DNCA Finance, a French investment management company managing €14.6bn of assets as of 31 January 2015.
Natixis said: “DNCA would join Natixis Global Asset Management’s global lineup of independent investment management affiliates.”
DNCA, which counts 79 employees in its offices in Paris, Milan, Luxembourg and Munich, is developing a range of “high-performing, well recognised investment solutions for retail clients across Europe.”
In detail, Natixis negotiates with TA Associates, Banca Leonardo and the managers of DNCA to purchase their equity interests in DNCA. However, DNCA’s management would remain a shareholder alongside Natixis Global Asset Management.
“DNCA’s management would benefit from a progressive withdrawal mechanism beginning in 2016 that would align medium-term interests and gradually increase Natixis Global Asset Management’s stake in DNCA to 100%,” explained Natixis.
The firm sees the addition of DNCA as “a major step forward in Natixis’ New Frontier strategic plan by making a strong contribution to growth in asset management revenues in Europe, while also offering substantial potential for revenue synergies.”
Through the acquisition of DNCA Finance, Natixis Global Asset Management will strengthen its position in retail markets. The deal would help DNCA step up its international expansion in retail markets outside of France and Italy and deploy its equity solutions to institutional clients by leveraging Natixis Global Asset Management’s global centralised distribution platform and support functions.
Pierre Servant, CEO of Natixis Global Asset Management and member of the senior management committee of Natixis in charge of Investment Solutions, says: “We hope to welcome DNCA – an entrepreneurial French investment management company with renowned expertise – as one of our affiliates as soon as possible. This projected acquisition furthers Natixis Global Asset Management’s strategy of expanding its multi-affiliate model in Europe and fueling our growth in retail markets through a unique combination of funds.”
Jean-Charles Mériaux, president of DNCA Finance, and Joseph Châtel, president of DNCA and Company, comment: “We are looking forward to joining Natixis Global Asset Management and working together on a genuine international project. In view of DNCA Finance’s success over the last 15 years in France and Italy, our preference was to find a fast-growing French group to assist us in new markets, while retaining our own characteristics and our staff’s entrepreneurial strengths.”
They add: “The support and synergies that we will develop with Natixis Global Asset Management’s distribution platform and support functions will help us step up our international expansion.”