EUROPE – France's Axa Investment Managers has agreed to a management buyout of its private equity division, in a deal that values the entity at more than €500m.
The "irrevocable" offer to acquire AXA IM Private Equity comes from its senior management, led by chief executive Dominique Senequier, as well as domestic family offices and parent company Axa Group.
Commenting on the deal – which will see a 40% share of the division sold to managers and employees, while Axa Group will retain a nearly 27% stake and family offices acquire the balance – the company said: "The transaction would enable AXA to monetise its interest in AXA Private Equity, a business successfully developed by the group since 1996, and would provide a strong foundation for the next growth phase of one of Europe's leading private equity firms."
In a statement, the company added that the private equity division's nearly 300 employees would be given the opportunity to take part through an unspecified vehicle and that payments would proceed in stages – starting with an immediate payment of €348m.
The remaining €140m will be paid out in stages, subject to certain performance targets being met.
Senequier said the arrangement would "deliver the continuity" its clients desired – including retaining Axa Group as a client, with €4.8bn in commitments.
"As we embark on this next phase of our story as an independent firm, our future will be one of capturing new opportunities borne out of the renewed confidence and vigour that will come with this deal," she added.
The standalone entity would have €24bn in assets under management.
Gérald Harlin, Axa Group's CFO, said the potential new shareholders were "positioned to continue creating value for its portfolio companies and investors".
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