Italian investment bank Mediobanca has agreed to acquire a majority stake in Cairn Capital Group, a London-based credit asset management and advisory firm.
Under the terms of the deal, the Italian lender will purchase 51% of the share capital of Cairn Capital on completion as well as have an option to buy some or all of the remaining 49% in three years.
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As at end of June 2015, Cairn Capital had $5.6bn of discretionary and legacy assets under management, with a further $9.1bn of assets under long term advice.
Cairn Capital was formed in 2004 with backing from Royal Bank of Scotland (RBS) and buyout group Star Capital Partners.
The majority will be acquired from Cairn Capital’s institutional shareholders and following which RBS will have no remaining interest.
The deal is part of Mediobanca’s strategy to develop an international alternative asset management business (MAAM).
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By GlobalDataAs part of the acquisition, Mediobanca will provide Cairn Capital with seed capital, allowing the launch of new investment strategies, while Cairn will o be responsible for day-to-day operations and retain full autonomy over its investment processes.
Subject to customary conditions, including approval from the relevant regulatory authorities, the deal is expected to complete by the end of 2015.
Mediobanca CEO Alberto Nagel said: "This transaction confirms our strategic focus on building a leading asset management business with attractive earnings and high return on capital to further develop the international footprint of Mediobanca."
Cairn Capital CEO Paul Campbell said: "This partnership will ensure the continued enhancement of our business and, above all, our focus on delivering strong investment performance and advice to our clients."
