Good morning Eurohubsters, Nina Lindholm here with the last Dealflow of the week.
It has been a busy few days for the financial services sector: Carlyle exited a metals and natural resources trader and merchant Traxys; LDC merged two trustee services firms into one; Altor Equity snapped up Kommunalkredit; and AnaCap merged its portfolio company Milleis with another private bank.
Independent. Let’s start with one of the mergers. Milleis Banque Privée, backed by AnaCap Financial Partners, merged with Cholet Dupont-Oudart Group, an independent private bank based in Paris.
Cholet Dupont offers a range of tailored wealth management services and merged with Oudart in June 2021. Currently, Cholet Dupont-Oudart manages around €4 billion of assets.
Milleis was acquired by AnaCap in 2017 and has seen a 16 percent growth in assets under management with new inflows of 25 percent per annum under its ownership.
“This combination represents another key moment for Milleis’ growth trajectory further bolstering an already strong track record in terms of growth, market position and client services,” said Alberto Sainaghi, investment director at AnaCap. “Welcoming Cholet Dupont-Oudart will allow Milleis to address a new market segment with a dynamic service and wider product offering to better serve its clients and we look forward to further building on this position.”
To find out more about the combined customer base and assets of the of the merged companies, take a look at our coverage here.
Better together. Continuing with mergers, LDC backed the merger of Ross Trustees Services and Independent Trustee Services (ITS) to form Independent Governance Group (IGG).
The firm will continue to operate under the IGG umbrella brand until the firms are fully merged, which is expected later in 2023. With this investment, LDC will become the private equity partner of the combined group, according to a release. The private equity firm first invested in Ross Trustees in 2020.
“This is a significant transaction for the pensions industry, joining two complementary businesses that each have strong track records to form a leading player,” said Phil Hinson, investment director at LDC.
You can read our reporting here.
Metals. Moving on from mergers to an exit. The Carlyle Group will sell its holdings in Traxys Group, a metals and natural resources trader and merchant. Traxys’ management, along with Optiver, CoLift and an investor group led by Regent Mercantile and LOM Financial will acquire Carlyle’s holdings, as well as those of affiliates of Louis M Bacon, the founder of Moore Capital Management.
Carlyle and the Bacon affiliates agreed to acquire a majority stake in Traxys in March 2014. At that time, Traxys’ annual turnover was over $6 billion.
Alan Docter, chairman of Traxys, said the firm “appreciates the contributions of Carlyle and Bacon who have supported our growth from $5.5 billion to $10 billion in revenues since the onset of our partnership in 2014”.
Our reporting on the deal is available here.
Going green. Lastly, we have an acquisition to look at. Altor Equity Partners agreed to acquire an 80 percent majority stake in Kommunalkredit Austria and will partner with the current owners and the bank’s management.
Kommunalkredit is a provider of financing products to infrastructure and energy projects across Europe. The firm is headquartered in Vienna. The firm is expected to deliver over €120 million in net interest income in 2022 and has had a compound annual growth rate over 50 percent during the last few years.
“Kommunalkredit has a unique position as financing partner to some of the most prominent green transition ventures and we believe that we jointly can build the European champion within sustainable infrastructure financing,” said Paal Weberg, co-managing partner at Altor. “Altor will support Kommunalkredit with capital and resources to strengthen its capabilities, building on our experiences from investing in other leading financial institutions and green transition champions.”
Check out our reporting on the deal here.
That’s all from me. I hope you have a great weekend. Craig McGlashan will be back to write to you on Monday.