GLOBAL – Santander Asset Management (SAM) aims to double its business volume in five years following a deal by its parent Grupo Santander to bring two new co-owners on board.
Private equity firms Warburg Pincus and General Atlantic have agreed to take a joint 50% stake in a new holding company for SAM, with Grupo Santander owning the other half, Santander said.
Javier Marín, chief executive at Banco Santander, said: “This partnership puts Santander Asset Management at the forefront of the industry’s consolidation process.
“It will help Banco Santander strengthen its relationship with our banking clients with a more competitive offering to address their investment needs.”
Santander is the largest bank in the euro-zone by market capitalisation.
The new company will integrate SAM’s 11 asset management companies, which are mostly in Europe and Latin America.
SAM has around €152bn under management.
The bank said the asset management subsidiary would compete with leading international asset managers and expected to double its business in five years.
The deal, subject to regulatory and corporate approval, values SAM at just over €2bn and will generate a net capital gain of €700m for Grupo Santander, it said.
According to the agreement, Banco Santander will sell products managed by SAM in countries where it has a retail network, and SAM will increase the distribution of its products and services internationally beyond the bank’s branch network.
Warburg Pincus has more than $40bn (€30.8bn) in assets under management, and General Atlantic around $17bn.
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