French financial group Natixis has reached an agreement to purchase a majority stake (51.9%) in Australian asset manager Investors Mutual Limited (IML), which becomes a new affiliate of Natixis Global Asset Management.
Established in 1998, IML has expertise in Australian equities, focusing on value style, and tallies assets under management of A$9.1bn (€6.1bn). The transaction forms Natixis GAM’s first acquisition in Australia. It will further increase its exposure to the local retail market and the Australian superannuation industry.
Natixis GAM has established presence in Australia in 2015 with the opening of an office in Sydney.
According to the terms of the deal, Natixis GAM will acquire all the shares in IML held by Pacific Current Group Limited, along with a portion of the shares in IML held by IML founder Anton Tagliaferro, for up to A$155m (€103m) in cash.
The transaction is expected to close in October 2017. Natixis said it will finance the operation with its own own funds and it has estimated the impact for its CET1 ratio at around -15 bps for the fourth quarter of 2017.
It is understood IML’s management team will remain shareholders in the business alongside Natixis Global Asset Management and that IML’s investment director, Anton Tagliaferro, will continue to run the business, supported by head of Research Hugh Giddy and other senior leaders.
There will be no changes to the way in which IML is run day-to-day, nor to its management, said Natixis.
“We have previously stated that it is our intention to pursue new growth in the Asia Pacific market, and this marks the first acquisition as part of those plans. IML has a strong track record as one of Australia’s most consistently-performing fund managers, and its commitment to investors and reputation in the market will make a significant contribution to the Natixis Global Asset Management multi-affiliate model,” said Jean Raby, member of Natixis senior management committee and CEO of Natixis Global Asset Management.
Natixis GAM currently has over 20 affiliates and managed $951.7bn (€810.5bn) in assets as of end of June 2017.