Italian asset manager Azimut has entered into an investment and shareholders agreement to acquire a 70% stake in Bosphorus for EUR7.4m (US$8.3m) through AZ International Holdings.
As part of the agreement, Azimut and Bosphorus have agreed to collaborate to grow the business in Turkey and beyond over the medium-long term.
The deal, which is subject to the regulatory approval by the competent authorities, comes as part of Bosphorus’ strategy to develop its product factory under a five-year business plan.
Upon completion of the deal, Azimut combined AuM in Turkey will exceed TRY2.0bn including TRY620m of AuM invested in AZ Fund Global Sukuk and AZ Fund Lira Plus.
Azimut said that the commercial and industrial integration of Azimut Portföy, AZ Notus Portföy and Azimut Bosphorus Capital Portföy will create Turkish independent player with a diversified product range and a distribution network with both financial advisors and third party distributors.
Bosphorus founders Mustafa Dogan, Tanju Gunel, Murat Salar and Huseyin Yener said: "We believe Bosphorus Capital will be strengthened by Azimut strategic approach and industrial platform in Turkey and globally, thus adding to our track record and dimension."
Azimut Holding chairman and CEO Pietro Giuliani said: "We are starting Azimut new 5-year business plan with a strong commitment to develop our international presence.
"With this transaction Azimut market share in Turkey reaches 2.5% of the total industry AuM, higher than our current market share in Italy, and consolidating our leadership among independent players with a market share of 43%."
As of December 2014, Bosphorus had AUM of some TRY1bn of which almost 70% in Turkish domiciled mutual funds and 30% in discretionary portfolios.