Natixis Global Asset Management will acquire a 51.9% stake in Australian equity boutique Investors Mutual from multiboutique holding company Pacific Current Group and Investors Mutual founder Anton Tagliaferro.
Natixis will pay A$155 million ($121.4 million) for the majority stake in the Sydney-based manager, said a joint Natixis-Pacific Current Group announcement Tuesday.
Natixis will pay PCG A$120 million for Pacific Current Group's 40% stake in Investors Mutual. The remaining A$35 million will be paid to Mr. Tagliaferro for an 11.9% stake in the firm.
Following the transaction, Mr. Tagliaferro will retain a 22% stake in Investors Mutual, a spokesman for Natixis confirmed. Other executives with the firm will hold a combined 26.1% stake.
A Pacific Current Group news release said the deal should close by Wednesday.
The Natixis news release said Investors Mutual had A$9 billion in assets under management of as of June 30, up from A$2.6 billion as of June 30, 2011. The firm's website says its investment style focuses on value and quality.
In the news release, Natixis CEO Jean Raby called the addition of Investors Mutual to his firm's lineup of more than 20 investment boutiques globally an opening move in Natixis' strategy to build its presence in the Asia-Pacific region.
"We have previously stated … our intention to pursue new growth in the Asia-Pacific market, and this marks the first acquisition as part of those plans," he said.
Fabrice Chemouny, the firm's head of Asia, is scheduled to brief reporters in Hong Kong Oct. 9 on Natixis's acquisition and growth plans for the region.
In a Pacific Current Group news conference Tuesday to discuss the deal, Mike Fitzpatrick, the group's chairman, said PCG was reluctant to sell its stake in a firm that has contributed solid earnings to his listed company's bottom line, but ultimately felt it was at a disadvantage competing with Natixis.
Investors Mutual has been a "fantastic investment" over the years for Pacific Current Group, said Mr. Fitzpatrick. There's "disappointment to see it go," but the sale was a "fair transaction," he added.
Natixis Global Asset Management had $952 billion in assets under management as of June 30.
