First Sentier Investors (FSI) has agreed to acquire a majority stake in European credit manager AlbaCore Capital Group.
Established in 2016, London-based AlbaCore has US$9.5 billion in assets in management. Its business spans various parts of the corporate credit spectrum, including private credit, collateralized loan obligations, liquid credit and structured credit in Europe.
It has longstanding relationships with public and private pension funds, sovereign wealth funds, insurance, as well as endowment and high-net-worth clients.
Financial terms of the strategic partnership were not disclosed. A statement from FSI says the senior team at AlbaCore will maintain a minority ownership stake in the business and continue to invest capital into funds. The deal is targeted for completion in the third quarter of 2023, pending regulatory approvals.
Mark Steinberg, FSI’s chief executive officer, says the partnership is aligned with the Sydney-based investment manager’s corporate strategy to accelerate growth by diversifying the range of investment capabilities it can offer to clients and expanding its global footprint.
“We identified alternative credit as a strategically important space for us to consider and we felt that AlbaCore’s unique position in the European market, its growth trajectory and strong investment performance would be complementary to our existing capabilities,” Steinberg says.
New asset classes and channels
AlbaCore’s broad product offerings will enable FSI to offer new asset classes and structures to clients, while unlocking new channels, regions and products to meet growing investor demand in the sector, the statement says. FSI manages US$146.2 billion of assets (as of December 31 2022) on behalf of institutional investors, pension funds, wholesale distributors, investment platforms, financial advisers and their clients worldwide.
David Allen, managing partner and chief investment officer at AlbaCore, says: “When we started to engage with FSI, it was clear there was strong cultural alignment between both businesses which will be critical to the success of our partnership.
“We see this partnership as enhancing AlbaCore’s growth prospects including extending market access to our expertise, deepening our product offering, and working with FSI’s responsible investment team on our approach and articulation around responsible investment,” Allen adds.
AlbaCore will continue to operate with investment and business autonomy with no change to its teams, office locations or brand. At the same time, FSI and AlbaCore will work together on areas to accelerate their respective strategic plans and longer-term growth trajectory, while leveraging their joint expertise.
“This partnership marks a new chapter for FSI and our shareholder Mitsubishi UFJ Trust and Banking, our people and our clients. We look forward to working with AlbaCore to explore areas for collaboration across our respective businesses. Together, we are better positioned to drive growth for our clients and broader stakeholders,” Steinberg says.
First Sentier Investors was advised by Berkshire Global Advisors, legal adviser Simmons & Simmons, and accounting firm EY.