Last updated: 18:23 / Thursday, 23 April 2015
Juan Alcaraz, Global CEO

Pioneer Investments and Santander Asset Management to Join Forces Creating a Leading Global Asset Manager

Pioneer Investments and Santander Asset Management to Join Forces Creating a Leading Global Asset Manager

UniCredit, Santander, and affiliates of Warburg Pincus and General Atlantic have signed a preliminary and exclusivity agreement to combine Pioneer Investments and Santander Asset Management to create a leading global asset manager.

Juan Alcaraz, current CEO of Santander Asset Management, will be the Global Chief Executive Officer, and Giordano Lombardo, current CEO and Group Chief Investment Officer (CIO) of Pioneer Investments, will be the Global CIO of the new company.

The combined firm, with approximately €400 billion in assets under management, will be one of the preeminent asset managers in Europe, as well as a comprehensively global firm with capabilities and client relationships around the world. The partnership between the two firms will provide for substantially enhanced economies of scale, a key advantage in the asset management industry, while also expanding the business's diversification with respect to investment strategies, distribution channels and region. The combined firm will have robust market share based on deep client relationships in a wide range of markets including both growing and established regions, covering institutional, wholesale third party, and proprietary channels.

Building on a strong growth trajectory with total combined net inflows of over €25 billion in 2014, the combined company will have improved growth potential owing to an increasingly independent profile and a broader set of investment solutions to meet client needs across all channels worldwide.

Pioneer and SAM bring largely complementary platforms, investment capabilities, and client relationships, resulting in a more complete range of solutions and services to the benefit of all clients. Through this strategic transaction, the combined firm will be committed to maintaining the continuity and repeatability of its investment processes that have served clients well over multiple market cycles.

Furthermore, it will offer an expansive global distribution footprint, with a presence in over 30 countries and exposure to both growing and well-established regions such as Latin America, North America, Asia, as well as a leading position in Europe. In addition to Pioneer and SAM’s longstanding institutional and wholesale third-party relationships, long-term distribution agreements with UniCredit and Santander will result in unparalleled retail distribution capabilities in Europe and Latin America.

The preliminary agreement will lead to the establishment of a holding company, with the name Pioneer Investments, which will control Pioneer’s US operations along with the combination of Pioneer and SAM's operations outside the US. UniCredit and the Private Equity Firms will each own 50% of the holding company, which will in turn own 100% of Pioneer US, and 66.7% of the combination of Pioneer and SAM's operations outside the US, while Santander will directly own the remaining 33.3% stake. The combined firm will continue to operate as one global entity, led by a single global management team, focusing on meeting the needs of its clients worldwide.

The agreement is based on an Enterprise Value of €2.75 billion for Pioneer Investments and €2.60 billion for Santander Asset Management (including its 49.5% stake in AllFunds Bank). Furthermore, the transaction is estimated to enhance UniCredit’s capital position by approximately 25 basis points.

Following the signing of the preliminary agreement, the parties will work towards signing a definitive agreement subject to the customary regulatory and corporate approvals.

For your information...

Pioneer Investments

Pioneer es una compañía gestora de activos global con presencia en 28 países y cuenta con un equipo experimentado de más de 2.000 empleados, que incluye más de 350 profesionales de la inversión. Pioneer es conocida a nivel internacional como una de las gestoras líderes en todas las estrategias de renta fija, con solidas habilidades en renta variable americana, europea y global, así como en multiactivos y soluciones orientadas al resultado y productos no tradicionales. Pioneer cuenta con 225.000 millones de euros en activos bajo gestión, dividido a partes iguales entre la distribución a través de la red de UniCredit de un lado y a través de intermediarios y clientes institucionales globales por otro lado. En 2014, Pioneer ha tenido unas ventas netas por importe de 13.000 millones de euros y ha estado entre las 5 primeras gestoras por ventas en Europa y entre las 10 primeras a nivel mundial.

Santander Asset Management

Santander Asset Management es una gestora global e independiente con fuertes raíces locales en Europa y América Latina. Con una presencia en 11 países y unos activos bajo gestión de 172.000 millones de euros en todo tipo de vehículos de inversión, fondos de inversión, planes de pensiones y mandatos institucionales. Las soluciones de inversión de Santander Asset Management comprenden mandatos especializados en renta fija y variable en Europa y América Latina.

Santander Asset Management cuenta con 755 empleados a nivel mundial de los que 220 son profesionales de la inversión con más de diez años de experiencia en la gestión de activos.