FRANCE - BNP Paribas Asset Management (BNP PAM) and Fauchier Partners have merged their joint venture - BNP Paribas Fauchier Partners (BNP FP)- with Fauchier Partners to create a major fund of hedge funds business.
BNP PAM will acquire a 50% stake in the enlarged Fauchier Partners in consideration for contributing its shareholding in BNP FP and making additional cash payments. Majority voting rights will however remain with management.
Following the merger, which is subject to regulatory approval, Fauchier Partners will become one of Europe’s leading dedicated managers of funds of hedge funds with assets of around US$3.5bn, the companies said in a joint release.
Fauchier Partners’ founders, Patrick Fauchier and Christopher Fawcett, will continue as chief executive and CIO respectively and the membership of the firm’s investment committee will be unchanged. BNP FP’s team will join the enlarged firm.
Gilles Glicenstein (pictured), CEO of BNP PAM said: “The creation of this new entity is a natural development in the cooperation between BNP PAM and Fauchier Partners. It will enable us to combine an entrepreneurial approach which is so essential to successfully managing funds of hedge funds, an independent investment process and the dynamism of an international group. This will enable us to consolidate our position as a major player internationally in this sector.”
Patrick Fauchier, chief executive of Fauchier Partners, added: “We have worked with BNP PAM over the last three years and have been delighted at the way our joint venture has developed over the period. Both our firms feel that the time is now right to simplify the current ‘two company’ structure. The merger achieves this in a single step.”
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