PATRIZIA has agreed to take over Whitehelm Capital for at least EUR 67 million.
Real assets investment firm PATRIZIA has entered into an agreement with Whitehelm Capital to acquire the company for at least EUR 67 million (AU$107 million). The deal is subject to regulatory approvals and is expected to take place in the first quarter of 2022.
The initial purchase price is payable in cash and PATRIZIA treasury shares, while the total purchase price is based on an earn-out structure and can reach a low three-digit million amount in euros if ambitious mid-term revenue growth targets are met.
“It was absolutely essential for us to find the right partner who brings clear additional value to our clients, embraces long-term thinking and has a strong track record in the industry,” Graham Matthews, Chief Executive and founding shareholder of Whitehelm said.
“We are really excited about partnering with PATRIZIA as they are a perfect cultural and strategic fit for us.
“PATRIZIA will enable us to expand our client reach in Europe and offer attractive infrastructure investment opportunities to PATRIZIA’s large international institutional and private investor base,” Matthews said.
Whitehelm shareholders have agreed to a lock-up period for the PATRIZIA consideration shares, fully aligned to the interests of PATRIZIA shareholders.
Whitehelm currently manages EUR 3.2 billion (AU$ 5.1 billion) in assets under management (AUM) with EUR 1.6 billion (AU$ 2.6 billion) additional commitments and has over EUR 22 billion (AU$ 35 billion) funds under advice from institutional, government, and private clients in Australia.
More than 80 per cent of Whitehelm’s revenues come from highly recurring management fees with long duration.
Whitehelm is 70 per cent owned by staff and 30 per cent by Challenger through its boutique investment arm Fidante Partners. Challenger has agreed to sell its 30 per cent stake for EUR 32 million (AU$51 million).
Fidante will provide ongoing administration and distribution services for a period of up to two years after the acquisition.
The deal will triple PATRIZIA’s infrastructure assets under management (AUM) to EUR 5 billion (AU$ 8 billion), while the company has the ambition to grow this segment to EUR 15 – 20 billion (AU$24 – 32 billion).
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