ITALY - Private bank Union Bancaire Privée (UBP) has invested in Aletti Gestielle Alternative (AGA), a fund of hedge funds provider in Italy with €3.6bn (US$5.7bn) in assets under management.
UBP, which is based in Switzerland, will purchase half of the total outstanding ordinary shares of AGA, and UBP and AGA will enter into a long-term advisory agreement.
In a statement, the firms said the partnership, which is subject to regulatory approval, would create the leading fully fledged alternative asset manager in Italy, through the combination of AGA's strengths in the private banking and retail business and UBP's strengths in the private banking and institutional business.
The businesses plan to strengthen AGA's positioning and growth options in the Italian market by developing its business, both institutional and private, and developing Banco Popolare's high net worth customer base in the Italian market.
Under the terms of the agreement, Banco Popolare will receive a cash consideration from UBP at closing, in addition to a deferred cash payment over the following years.
The cash consideration is expected to generate a net capital gain of approximately €80m (US$126.5m) at closing.
This week's edition of Professional Pensions is out now.
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