Mount Street has agreed to acquire EAA Portfolio Advisors (EPA), the portfolio management subsidiary Erste Abwicklungsanstalt (EAA).
London-based Mount Street will acquire EPA’s approximately 90 employees at offices in London, Düsseldorf, New York and Madrid.
Post-acquisition, EPA will remain a separate entity offering tailored services for the EAA portfolio until at least 2020, the companies said in their press statement.
The acquisition adds portfolio management of €29bn of diversified performing and non-performing credits to approximately €26bn of commercial real estate loans and bonds that Mount Street currently manages, bringing its total AUM to over €55bn.
Mount Street CEO and co-founder Ravi Joseph commented “For the Mount Street brand, this transaction reaffirms our pre-eminent credentials as the counterparty of choice for banks and state entities considering strategic transactions of this nature. For the leadership of Mount Street, who have extensive prior experience in credit, asset finance, and structured finance, this expansion is a natural progression in the evolution of our firm.”
EPA was founded by EAA in 2014, taking on workforces of its former service providers Portigon AG and Portigon Financial Services GmbH, respectively. Thereafter, EPA's services have consistently been tailored to EAA's needs.
EAA was created as the asset management company (bad bank) to manage the assets of the former WestLB AG at the end of 2009. Its shareholders include the German State of North-Rhine Westphalia (NRW) and NRW’s Savings Banks Associations.
The regulatory approval for the deal is expected to come in the first half of 2017.