Brazilian private-equity manager Patria Investments has agreed to buy Chile-based credit specialist Moneda Asset Management in a cash and stock deal valued at $315m.
Patria will pay an additional consideration in the second and third years after closing, subject to the achievement of certain revenue and profitability targets.
The transaction is expected to close by the end of the year 2021.
Moneda, which serves institutional investors and as high-net-worth (HNW) individuals, oversees $10bn in assets across credit and public equities.
The merger is expected to create a Latin American investment platform with $25.9bn in assets.
The combined platform will manage over $9.7bn in private equity, $5.5bn in credit, $5.1bn in infrastructure, $2.0bn in advisory and distribution, $3bn in PIPE and public equities and $500m in real estate investments.
Patria said that the deal would bolster the firm’s product offering by adding the largest credit investment platform in Latin America.
It would also help expand the firm’s geographical exposure within the region through client base and product offering.
Patria senior managing partner and chairman of the board Olimpio Matarazzo said: “The product offerings and the geographical and currency exposures are a perfect fit.
“Patria is a leader in Private Equity and Infrastructure investments in Latin America, and Moneda is the top credit investor in the region.”
Patria CEO Alexandre Saigh said that the transaction will be accretive to earnings per share within the first year.
Moneda CEO Alfonso Duval said: “With Patria, we will have the opportunity to expand our cross selling of products, leveraging a complementary investor base.
“It is worth noting that both companies are partnerships led by like-minded, entrepreneurial teams. There’s been a strong cultural alignment among the teams since the onset.”