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Amundi buys Kleinwort Benson Investors from Oddo

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European asset manager Amundi is to buy Kleinwort Benson Investors (KBI) from Oddo & Cie, in a deal which gives a 12.5 per cent stake to the KBI management team. 

Dublin-based KBI, a subsidiary of BHF Kleinwort Benson Group which was recently acquired by the Oddo group, is an equity management firm, headquartered in Dublin, Ireland with offices in Boston and New York and employing 62 people. Its investment team manages EUR7.6 billion as of 31 March 2016, mainly across global equity capabilities, and has delivered a CAGR from 2011-15 of 28 per cent.
 
KBI’s clients are spread across institutional, sub-advisory and third party distributors. The firm has expanded into North America, which represents 52 per cent of assets under management by client domicile, while Ireland and UK account together for 26 per cent, Continental Europe 14 per cent and Asia 8 per cent.
 
In 2015 KBI posted net revenues of EUR31 million euros and a net income of EUR9 million.
 
It is expected that within Amundi, KBI’s global equities expertise will augment Amundi’s equity franchise, while KBI will leverage Amundi’s retail and institutional presence in Europe, Asia and the Middle East.
 
The transaction benefits from the full support of KBI’s management team, who will hold a material stake in the company. Going forward KBI will retain its distribution, operating and portfolio management autonomy. Sean Hawkshaw will continue as Chief Executive Officer and Noel O’Halloran as Chief Investment Officer. All employees are expected to remain with the firm.
 
The transaction is fully in line with Amundi’s financial criteria for acquisitions: the deal will be immediately accretive to Amundi’s EPS and will comply with the target of an expected return on investment superior to 10 per cent within three years.
 
The transaction further strengthen’s co-operation between Amundi and Oddo & Cie, the firm says, via the cross selling of their investment expertise.
 
Yves Perrier, CEO of Amundi says: “We are very pleased to add KBI as a new platform within Amundi Group. This acquisition is perfectly in line with Amundi’s strategy presented at the time of our recent IPO. It will strengthen our offer with a complementary and well-performing equity expertise that will benefit our clients in Europe, Asia and the Middle-East.”
 
Sean Hawkshaw, Chief Executive Officer of KBI, says: ‘’Amundi is a highly regarded pure play asset manager and will be a solid long term partner for KBI. We are very excited about this next step in our growth. We believe that the combination of Amundi as a majority shareholder and a meaningful stake held by key employees offers an ideal ownership structure to continue to develop the firm while allowing us to deliver the best possible investment returns and service for our clients globally.’’ 
 
Philippe Oddo, Managing Partner of Oddo & Cie, says: “Amundi will provide a high-quality support both to KBI teams and to their clients, and we are convinced that this co-operation will be successful.”
 

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