La Financière de l'Echiquier and Primonial have entered into a strategic partnership to create a 'leading asset manager' in France and Europe for retail and institutional customers.
La Financière de l'Echiquier and Primonial signed an agreement on November 30, 2017 through which La Financière de l'Echiquier will acquire the asset management activities of Primonial, AltaRocca Asset Management and Stamina Asset Management - currently operating under the 'Primonial Investment Managers' brand name, while Primonial will acquire a 40% stake in La Financière de l'Echiquier, becoming a reference shareholder alongside founding majority shareholders, Didier Le Menestrel and Christian Gueugnier.
In addition, Christophe Mianné (pictured) has been appointed CEO of La Financière de l'Echiquier while maintaining his position of deputy CEO in charge of asset management with Primonial. Mianné, formerly deputy head of global banking and investor solutions at Societe Generale in Paris, joined Primonial Group as chief operating officer, on August 31. Mianné, who was one of Societe Generale's (SG) most senior executives in equity derivatives parted ways with the French bank in March after more than two decades of service.
Mianné had been chairman of the board and deputy head of global banking and investor solutions at SG since 2013, after being part of the team set up by Jean-Pierre Mustier in the late 1980s to develop equity derivatives at the French bank. Primonial Group launched in January 2017 DS Investment Solutions, a subsidiary dedicated to the development of structured investment solutions for French retail investors.
As a result of the transaction, La Financière de l'Echiquier will manage more than €10bn in assets, strengthening its position as a key player among the top five independent asset management companies in France. It will also reinforce its position in the fixed income segment and accelerate its growth by leveraging on Primonial's powerful distribution capabilities, according to Didier Le Menestrel, La Financière de l'Echiquier's Chairman.
'Our partnership with Primonial will enable us to accelerate our development in the retail and institutional customers segments, benefiting from Primonial's unique distribution platforms, whilst the contribution of AltaRocca AM and Stamina AM will provide La Financière de l'Echiquier with a broader product range,' said Le Menestrel.
Stéphane Vidal, Primonial's chairman said that 'the background, the strong brand name and funds' performance track-record of La Financière de l'Echiquier will significantly contribute to Primonial group's strategic development by completing its financial asset management offering'.
'This partnership will allow us to offer to our customers a range of investment solutions covering all key asset classes (real estate, equities, fixed income/convertibles, structured products, etc.),' said Vidal.
This transaction has received the support from Primonial group's shareholders (Bridgepoint, Crédit Mutuel Arkéa and its management) and from the board of directors of La Financière de l'Echiquier. It remains subject to clearance (visa) from the Autorité des Marchés Financiers (AMF), the French financial market regulator, and approval from the French Competition Authority. The transaction is expected to be completed before the end of the first quarter of 2018.
Under the terms of the partnership, La Financière de l'Echiquier's board of directors will be chaired by Le Menestrel, the founder and current chairman-CEO of the company. Mianné, while retaining his current position as Deputy CEO of Primonial group in charge of Asset Management, will become La Financière de l'Echiquier's Chief Executive Officer. Christian Gueugnier will remain Deputy CEO of La Financière de l'Echiquier.
SRP's French database lists 119 structured products from Primonial dating back to July 2002 of which 56 are still live products. Last year Primonial sold 24 structured products worth an estimated €291m. Year to date, the French firm has marketed 20 structured products worth an estimated €147m, according to SRP data.
La Financière de l'Echiquier's financial and legal advisors are respectively d'Angelin & Co. and Sygna Partners. Primonial was advised by Rothschild & Co, DLA Piper and Acetis Finance.
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