Natixis has entered into exclusive negotiations with TA Associates, Banca Leonardo and the managers of DNCA related to the proposal by Natixis Global Asset Management to acquire their equity interests in DNCA.
The addition of DNCA to Natixis Global Asset Management’s global lineup of affiliates would represent a major step forward in Natixis’ New Frontier strategic plan by making a strong contribution to growth in asset management revenues in Europe, while also offering substantial potential for revenue synergies.
With €14.6bn of assets under management at the end of January 2015, DNCA has pursued an entrepreneurial approach to developing a broad range of high-performing, well-recognised investment solutions for retail clients across Europe.
The combination of the proven expertise of Natixis Global Asset Management’s investment managers, DNCA’s solid investment performance and controlled risk profile, and the strong DNCA brand name would make a substantial contribution to the further development of Natixis Global Asset Management’s global multi-affiliate model and the reinforcement of its existing expertise.
DNCA’s management would remain a shareholder alongside Natixis Global Asset Management and would benefit from a progressive withdrawal mechanism beginning in 2016 that would align medium-term interests and gradually increase Natixis Global Asset Management’s stake in DNCA to 100%.
This projected acquisition was presented to Natixis Global Asset Management’s representative bodies on Wednesday, 18 February.
The planned transaction would provide Natixis Global Asset Management with a unique combination of funds with which to strengthen its position in retail markets.
It would help DNCA step up its international expansion in retail markets outside of France and Italy and deploy its equity solutions to institutional clients by leveraging Natixis Global Asset Management’s global centralised distribution platform and support functions.
“We hope to welcome DNCA – an entrepreneurial French investment management company with renowned expertise – as one of our affiliates as soon as possible. This projected acquisition furthers Natixis Global Asset Management’s strategy of expanding its multi-affiliate model in Europe and fueling our growth in retail markets through a unique combination of funds,” says Pierre Servant, CEO of Natixis Global Asset Management and member of the senior management committee of Natixis in charge of Investment Solutions.
“We are looking forward to joining Natixis Global Asset Management and working together on a genuine international project. In view of DNCA Finance’s success over the last 15 years in France and Italy, our preference was to find a fast-growing French group to assist us in new markets, while retaining our own characteristics and our staff’s entrepreneurial strengths. The support and synergies that we will develop with Natixis Global Asset Management’s distribution platform and support functions will help us step up our international expansion," explains Jean-Charles Mériaux, President of DNCA Finance, and Joseph Châtel, President of DNCA and Company.