Managers eye alts firms in September deal-making

Private equity and credit investment advisory firm CVC Capital Partners agreed to acquire secondaries manager Glendower Capital, a spokesman said.

Terms of the deal were not disclosed. The transaction, which is scheduled to close in the fourth quarter of the year subject to regulatory requirements, will boost CVC's AUM to €113 billion ($134.2 billion).

Glendower, which manages and advises around $8 billion, will continue to operate under its current name and leadership after the deal closes."Glendower has a very similar investment-led culture to CVC as well as the operational and financial scale to address what we see as a compelling market opportunity within secondaries in the coming years. Their established platform perfectly complements our existing family of private equity and credit strategies and we look forward to supporting (Glendower CEO) Carlo (Pirzio-Biroli) and (CIO) Charles (Smith) in growing their business further," Rolly van Rappard, co-founder of CVC, said in a news release Sept. 13.

BNP Paribas Asset Management agreed to acquire a majority stake in Amsterdam-based lender Dynamic Credit Group, a spokesman confirmed.

The deal will enable the Paris-based money manager to increase its private debt and real assets business by adding Dynamic's €9 billion ($10.7 billion) in assets under management, its Dutch mortgage and loans capabilities, and a global distribution network.

Currently, BNP Paribas AM has €1 billion in Dutch mortgage strategies and about €11 billion across all of its private markets business.

Terms of the deal were not disclosed. The deal will close when regulatory approvals are obtained, the spokesman said.

Dynamic Credit will be incorporated into the private debt and real assets division of BNP Paribas AM under the leadership of David Bouchoucha, CIO and head of private debt and real assets, when the deal closes.

Dynamic Credit's CEO and founder Tonko Gast will report to BNP's board and to Mr. Bouchoucha.

"This partnership marks an important step in the development of our private debt platform and a significant move forward in terms of assets under management, which now totals more than €20 billion of client commitments," Mr. Bouchoucha said in a news release Sept. 15. "It also adds an innovative and well-established skill set in the origination, management and servicing of loan portfolios on a granular basis, especially within the mortgage area."

Multimanager boutique firm Victory Capital Management will acquire New Energy Capital Partners, the company's first purchase of an alternative investment manager, in a deal expected to close in the fourth quarter.

Victory will pay $65 million at closing to acquire all of New Energy Capital Partners, which focuses on debt and equity investments in clean energy infrastructure projects and companies.

Additional payments based on revenue growth may be made to New Energy Capital employees over a six-year period, according to a Victory investor presentation obtained by Pensions & Investments.

New Energy Capital will continue to operate independently under its own name and no changes are planned regarding the firm's investment process or team, said Tricia Ross, a Victory Capital spokeswoman, in an email.

New Energy Capital manages four private closed-end funds in multiple energy markets and geographies primarily for institutional investors. The firm has been involved in transactions totaling about $3 billion in total asset value, Victory Capital's news release said. The assets under management total was not provided.

New Energy Capital Partners will be Victory Capital's 11th affiliate manager.

"Launching an alternative investment platform creates an additional path for future growth," said David Brown, chairman and CEO of Victory Capital, in a news release, adding "NEC perfectly embodies all of the characteristics we seek, and we particularly like their specialization in clean and renewable energy, which is a fast-growing market segment."

Victory Capital managed $162.9 billion as of July 31.

Latin American alternative money manager Patria Investments plans to acquire private credit specialist Moneda Asset Management in a deal worth $315 million.

Under the agreement, which is expected to close before the end of 2021, Moneda's partners will receive $187 million in Patria Investments' Class B common stock and $128 million in cash, according to a Sept. 3 joint news release from the firms.

The combined organization will have about $26 billion in assets under management. Moneda Asset Management, which currently has over $10 billion in AUM, manages both public and private credit as well as public equities.

"Complementary is the word that defines this transaction," said Olimpio Matarazzo, senior managing partner and Patria Investments' chairman of the board, in the news release. "The product offerings and the geographical and currency exposures are a perfect fit. Patria is a leader in private equity and infrastructure investments in Latin America, and Moneda is the top credit investor in the region. In addition, both companies have a similar culture, based on partnership and exceptional client service."

European real assets manager PATRIZIA agreed to acquire infrastructure manager Whitehelm Capital for €67 million ($80 million) in cash and shares, a spokesman confirmed.

With the acquisition, which is expected to close in the first quarter of 2022, PATRIZIA will add €3.2 billion in infrastructure AUM to its €1.5 billion infrastructure portfolio and boost its €48 billion in assets under management overall.

The transaction will broaden PATRIZIA's investments to include themes such as digital infrastructure, energy transition, water and environmental services, and social infrastructure.

For example, Whitehelm manages Smart City Infrastructure Fund, which was seeded with €750 million by APG Asset Management, the in-house manager of the €523 billion ABP, Heerlen, Netherlands.

Whitehelm's acquisition will also add €1.6 billion in additional commitments to PATRIZIA's portfolio as well as help the firm expand its footprint in Asia-Pacific by adding €22 billion in funds under advisement for institutional, government, and private clients in Australia.

The spokesman added PATRIZIA is planning to grow its assets by 15% per year over the next three to five years through a mix of organic growth and mergers and acquisitions. Within that, the firm intends to grow its infrastructure assets under management to between €15 billion and €20 billion.

IM Global Partner continues to expand its U.S. footprint by acquiring a minority stake in municipal bond manager Asset Preservation Advisors.

IMGP has taken a 42% non-controlling stake in Asset Preservation Advisors, an Atlanta-based investment manager with $4.8 billion in assets under management, specializing in tax-exempt and taxable municipal bonds.

IM Global Partner operates in 16 locations in Europe and the U.S. through numerous partners, with $37 billion in assets under management. APA will retain its independence and take advantage of iM Global Partner's global asset management and distribution network, a joint news release said Sept. 15.

It is iM Global Partner's second partnership launch with a U.S.-based firm this year. It announced in July the acquisition of a 45% non-controlling stake in Richard Bernstein Advisors.

Kudu Investment Management is acquiring minority stakes in investment manager Douglass Winthrop Advisors and Third Eye Capital and its affiliates.

Terms of the deals were not disclosed. DWA is primarily a high-net-worth manager with $4.8 billion in assets under management, which includes $336 million from foundation and endowment clients, a spokeswoman said in an email. DWA will retain independent control of the firm.

Third Eye is a Toronto-based private credit firm with about C$2.8 billion ($2.2 billion) in assets under management. Third Eye is Kudu's first Canada-based investment.

Kudu Investment Management provides capital to money managers and wealth managers, and this latest deal brings the firm's total to 17 partners that have collective assets under management of $96 billion.

Hub International Ltd., an insurance brokerage and financial services firm headquartered in Chicago, announced Sept. 7 that it had acquired Glen Allen, Va.-based Millennium Advisory Services, a financial planning and asset management firm.

Terms were not announced. The transaction was completed Sept. 1.

"The team at Millennium strengthens our presence both in Virginia and in the education markets," said Joe DeNoyior, national president of Hub Retirement and Private Wealth, said in a news release.

Hub Retirement and Private Wealth, a unit of Hub International, has approximately $105 billion in AUM through several registered investment advisory affiliates, confirmed spokeswoman Jessica Wiltse.

Millennium has $525 million in AUM, she wrote. She added that all 25 members of Millennium, including Paul Hunt, co-founder and president, and Steve Anderson, co-founder and vice president, will join Hub.

Millennium specializes in financial planning advice and provides investment management services to colleges, universities, endowments and foundation boards, the news release said.