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November 6, 2020

Natixis to end partnership with H20 Asset Management

French investment bank Natixis is planning to end its partnership with the troubled H20 Asset Management as it seeks to bolster risk controls.

According to the Financial Times report, Natixis aims to divest its majority stake in H20 Asset Management.

The money manager was under fire after it was revealed last year that it had invested more than €1bn of investor money into illiquid bonds related to a controversial financier.

The latest move comes after Natixis appointed Nicolas Namias as its new CEO earlier this year, following which, the company started working to trim down costs and reduce associated risks.

The publication added that Natixis will remove H20 from the list of strategic assets and is currently in discussions to terminate the partnership.

The plans that are being explored include a progressive sale of its stake in the company. The investment bank may also ask H20 to assume the distribution of its own funds.

H20 Asset Management did not respond to the Financial Times’ queries.

At the end of September, H20’s assets under management amounted to €20bn. The figure was around €30bn at the start of the year.

Natixis now plan to exit from riskiest products and restrict exposure limits on low to medium risk equity derivatives.

However, the company is expected to remain committed to the multi-boutique model, which involves buying majority stakes in smaller investment firms.

Earlier this year, Natixis opened a Corporate & Investment Banking office in Riyadh, Saudi Arabia.

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