US private equity firm Hellman & Friedman and Singapore’s sovereign fund GIC will buy 100% of Allfunds Bank, a multimanager distribution platform of asset management products targeted at institutional investors, valued 1.8 billion euros (see here the press release).
Sellers are Intesa Sanpaolo (50%), Banco Santander (25%) and funds managed by Warburg Pincus and General Atlantic private equity firms (25%), who are the same private equity firms who sold back to Santander their 50% stake in Santander Asset Management last November (after the projected acquisition of Pioneer from Unicredit had failed, see here a previous post by BeBeez).
The 1.8 billion euros valuation for Allfunds Bank equals 15x the FY 2016 pro-forma ebitda which was 117 million euros (it was 107 millions in 2015, see here Allfunds Bank FY 2015 consolidated statement), thanks to about 250 billion euros of assets under management.
In a press release Intesa Sanpaolo said yesterday that Allfunds Bank contributed for 34.5 million euros to its profit and loss account in 2016 in the form of distributed profits from assets holdings and that the bank is receiving 900 million euros in cash for its stake in Allfunds which will translate into 800 million euros of net capital gain (see here the press release).
As for Banco Santander, the Spanish bank will cash 470 million euros in for its 25% stake, with a net gain of about 300 million euros (see Expansion here).
In the deal Intesa Sanpaolo was advised by BofA Merrill Lynch and Morgan Stanley as for the financial issues and by Linklaters for the legal issues. Barclays and Citibank was financial advisors to Hellman & Friedman and GIC; Freshfields and Ropes&Gray supported Hellman & Friedman on the legal issues, while Simpson Thacher & Bartlett was legal advisor to GIC.
H&F-GIC consortium won bids coming from Chinese investment veichle Legend Holdings and from two private equity consortiums: one made by Bain Capital, Advent International and Singapore’s Temasek and the other made by Permira and Canadian pension fund PSP Investments (see here a previous post by BeBeez).