Gottex Fund Management Holdings acquired a “substantial majority” of multiasset manager Frontier Investment Management, confirmed Andre Keijsers, Gottex senior managing director, head of corporate strategy.
Exact terms are not being disclosed, but Gottex is acquiring Frontier through a combination of up to 450,000 Gottex shares at the current share price and additional cash to be paid over the next two years and adjusted for Frontier's future revenue. Gottex shares closed at $2.86 Wednesday on the Swiss market.
Both firms are multiasset investment managers with alternative investment capabilities, but Gottex's assets under management are predominantly based in the U.S., Mr. Keijsers said.
“What Frontier adds is a U.K. product range and European platform distribution,” Mr. Keijsers said in a telephone interview.
Frontier will retain its name and staff. Michael Azlen, founder, CEO and chief investment officer of Frontier, will retain an equity interest in the firm. Mr. Azlen will report to Bill Landes, global CIO of Gottex's multiasset business.
“The combination of Frontier with Gottex's multiasset business will create a complete range of multiasset investment capabilities from liquid low-cost multiasset index replication portfolios to actively managed multiasset funds,” according to a news release from Gottex.
Gottex has about $7 billion in assets under management; Frontier, $550 million.