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Deals & People April 18, 2011
Principal to Acquire Finisterre Capital
Principal Global Investors has agreed to acquire a majority stake
in Finisterre Capital LLP and Finisterre Holdings Limited, an emerging
markets investor based in London.
Reported by Fred Schneyer
Founded in 2002, Finisterre Capital has approximately $1.63 billion in assets under management primarily across three funds: Global Opportunity Fund, Sovereign Debt Fund and Credit Fund. The five partners (Frode Foss-Skiftesvik, Paul Crean, Rafaël Biosse Duplan, Xavier Corin-Mick, and Yan Swiderski) will retain a significant minority stake in the business and have agreed to put a significant share of their consideration into funds managed by the firm. They will continue to direct the day-to-day operations and will retain authority over fund investment decisions, the announcement said.
Through this transaction, The Principal will enhance its emerging market investment capabilities, with an opportunity to develop a wider platform through the launch of complementary new emerging market products and strategies, and further strengthening its multi-boutique model. The transaction is expected to close early in third quarter, pending regulatory approval.
It is part of the Principal Financial Group’s 2011 capital deployment strategy of spending approximately $700 million on executing attractive M&A opportunities and a share repurchase program, the company reported.