First Sentier Investors will acquire a 75% stake in London-based credit boutique AlbaCore Capital Group, spokesmen for both asset managers confirmed Monday.
Terms of the deal, expected to close by the third quarter of 2023, weren't disclosed.
The deal structure envisions "AlbaCore team members (permanently maintaining) a significant minority equity stake in the business," which has grown to $9.5 billion in assets under management since the firm's launch in 2016, with a focus on private credit, loans, collateralized loan obligations, dislocation funds and structured products, according to an AlbaCore spokesman.
In a news release, Mark Steinberg, CEO of Sydney-based FSI, which reported AUM of $146.2 billion as of Dec. 31, 2022, said a strategic partnership with AlbaCore will further FSI's strategy of accelerating growth by diversifying FSI's investment offerings while expanding its global footprint.
"We identified alternative credit as a strategically important space for us to consider and we felt that AlbaCore's unique position in the European market, its growth trajectory and strong investment performance would be complementary to our existing capabilities," said Mr. Steinberg.
A spokesman for FSI said the firm, which is owned by Tokyo-based Mitsubishi UFJ Trust and Banking Corporation, doesn't have private credit, structured credit or CLO offerings at present.
A spokesman for AlbaCore said his firm's capabilities in Europe's private and public debt markets will mesh well with FSI's existing expertise in private markets. And while European investors currently dominate its client base, a strategic partnership with FSI will leave AlbaCore better positioned to pursue opportunities across the Asia-Pacific region and North America, he said.
AlbaCore will continue to operate with investment and business autonomy with no change to its teams, office locations or brand, the FSI news release said.
