Eurobank EFG has agreed to acquire a minority stake of 9.99% in Marble Bar Asset Management LLP (MBAM), a leading UK-based alternative asset manager. Its Zurich-based sister company, EFG International, will acquire the remainder. Completion is expected in early 2008, subject to regulatory approvals.
MBAM is an investment manager specialising in long/short equity strategies, serving institutional clients as well as ultra-high-net-worth individuals. Clients’ Assets under Management are circa $4.4 billion. Its approach is distinctive, combining sophisticated analysis using a proprietary stock screening tool with a discretionary trading overlay based on the experience of MBAM’s senior fund managers and fundamentals analysis team. Its investment strategy is to achieve relatively low volatility and low correlation to equity markets, through low-leveraged funds and with a targeted performance in the range 12-15% net of fees.
MBAM manages four fund families, and all are characterised by consistently positive performance in keeping with its approach and objectives. Since the establishment of the first fund nearly ten years ago, annual compound returns for each of the fund categories have, since inception, been in the range 13-19%.
Established in 2002, MBAM has two founding partners - Hilton Nathanson, CIO and Gilad Hayeem, CEO - who are part of a seven-person senior management team and have an investment track record dating back to 1998. The founding partners, senior management team and other key personnel will remain in place. Overall, MBAM has 70 employees, the majority of whom are based in London.
Eurobank EFG will contribute $52 million for its 9.99% stake as an initial consideration and expected future payments are in the range $30-80 million, subject to MBAM`s performance over a six year period.
For Eurobank EFG, the strategic driver underlying this investment in MBAM is to enhance access to value-adding, high-return investment solutions developed in the hedge fund industry. Through this, Eurobank EFG will enrich the range of sophisticated products offered to select Eurobank EFG clients including total return products, thus responding to an increasing appetite for high-quality investment proposals in the Greek investor base. In addition, Eurobank EFG, by offering a yet more expanded and advanced portfolio of products, will be able to further access the Greek high-net-worth individual customer base and become more appealing in this specific segment. Overall it is expected that this transaction will develop further synergies between EFG International and Eurobank EFG in the area of investment management.
For further details on this transaction please see EFG International`s website: http://www.efginternational.com.