That was fast.
Less than ten days after entering exclusive acquisition talks with Dexia, HK-based private equity firm GCS Capital is buying the asset management arm from the Dexia group, a case of #East2West and #Multi-Convergence.
The price was set at about half a billion, but that is subject to further adjustments upon completion of the deal some time in the first quarter off 2013.
Recently we have seen KKR announce a partnership with Schwab to offer two funds (high yield and distressed opps) for $2,500 minimum investment, American Funds raising multi-billions in an EM PE fund, and many more examples of convergence between alternative and traditional asset management – Newcits et al.
Still, this acquisition has the added component of an Asia PE firm buying a European household name to deliver global distribution of product. GCS, run by two former HSBC investment bankers, is backed by various institutions in the region and intends to keep Dexia AM as a center of excellence in Europe.
Culturally this will be an interesting story to follow, especially since GCS signed a partnership agreement with ICBC, opening distribution pathways into China and beyond. As a strategic partner to ICBC, Dexia can now access distribution in China, and vice versa, GCS can offer Asia expertise in Europe.
Huan Guocang, GCS’ CEO, commented on the deal: “GCS Capital is delighted to partner with DAM’s experienced management team and together with our strategic partner, ICBC, broaden the franchise across emerging markets to capture capital flows.”
As we are entering an era of multi convergence and multipolarity, let the games begin.
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(c) Enskat Associates 2012
More details on the global asset management industry can be found in EAQ, a quarterly asset management review featuring thought leaders globally.
Warren Enskat Group 