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March 28, 2022

Natixis to offload stake in scandal-ridden subsidiary H2O Asset Management

Natixis Investment Management (Natixis IM) has finalised a deal to sell its majority stake in scandal-hit asset manager H2O.

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Under the agreement, Natixis will initially offload 26.61% of its holdings in H2O and will sell the remaining 23.4% in four to six years after securing ‘the necessary regulatory approvals’.

H20 is currently under investigation by the UK’s Financial Conduct Authority (FCA) and other regulators for scandals in connection with risk controls.

The money manager came under the regulatory lens in 2019 after it was found that it invested over €1bn of investor money into illiquid bonds linked to a controversial financier Lars Windhorst.

Natixis IM decided to cut its ties with the troubled asset manager in 2020 as part of a strategy to increase risk controls under CEO Nicolas Namias.

Last year, a plan by the French investment bank to sell back its stake to H2O’s management faced pressure from regulators, who did not want H2O co-founders to own a bigger share of the firm.

After the completion of the finalised transaction, Natixis IM will not be represented on the board of directors of any H2O AM group company.

Following the wind-down of the partnership, 40 employees of H20 will hold a stake in the asset manager, bringing the number of employee shareholders to almost half the company.

There will not be any change in the share capital held by the two founders.

In addition to the deal, the companies have announced several measures to strengthen the governance H2O.

This includes the introduction of a supervisory board, with a majority of independent members for all its Europe-based investment management firms.

Natixis IM and H2O also agreed to transfer the distribution, communications, customer service and marketing activities of the investment management firm to the latter’s Investor Relations team.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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