Alantra and Grupo Mutua Madrileña agree €45m financing deal

Investment banking and asset management firm Alantra and Spanish insurer Grupo Mutua Madrileña have reached an agreement whereby Mutua will contribute €45m to finance the growth plan of Alantra Asset Management and, in return, will obtain a 20 per cent stake in the division.

Posted Thursday, February 27th 2020
Alantra and Grupo Mutua Madrileña agree €45m financing deal

Ignacio Garralda

Both parties have agreed on an earn out of up to €11.2m.

As part of the agreement, Alantra and Mutua have agreed to create a €100m investment pool aimed at investing in products managed by Alantra’s asset management division, with both parties contributing €50 million each. Alantra’s contribution includes its current portfolio of investments in its own vehicles.

Through this transaction, which is subject to approval by the Spanish Stock Exchange regulator (CNMV), Mutua will provide the financial resources necessary for the “growth, both organic and inorganic, of Alantra’s alternative asset management platform”, according to an Alantra statement. The agreement will also act as a “significant reinforcement of Alantra’s capital raising capabilities”, the statement added.

Santiago Eguidazu, executive chairman of Alantra, said: “This transaction strengthens our value proposition to investors by significantly scaling, internationalizing and diversifying our alternative asset management business. The incorporation of Grupo Mutua strengthens our alignment of interests with investors and reaffirms our commitment to run a business free of conflicts of interests.”

Ignacio Garralda (pictured), chairman of Mutua Madrileña, said: “The partnership with Alantra Asset Management allows Mutua to further expand its presence in alternative asset management. This agreement responds to Mutua’s 2018-2020 strategic plan, which intends to diversify its investments and grow its wealth management business as one of its key pillars. This is the fourth transaction carried out by Mutuactivos [the asset management subsidiary of Mutua Madrileña] in the asset management segment in the last 12 months, being able to position itself as the first independent firm in Spain with over €7.8bn in assets under management.”