PE-backed Santander AM and Pioneer Investments to merge
Warburg Pincus- and General Atlantic-backed Santander Asset Management is to merge with Unicredit’s Pioneer Investments.
Warburg Pincus and General Atlantic will make an additional equity investment in the enlarged group as part of the transaction.
The deal values Santander AM and Pioneer Investment at €2.6bn and €2.75bn, respectively.
Following completion of the transaction, Warburg Pincus and General Atlantic will share a 33.3% stake in the resulting group, with Unicredit and Santander each taking a 33.3% stake.
The merged group, which will operate under the Pioneer Investments name, will have €355bn in assets under management.
As a result of the merger, Pioneer and Santander AM stated the new group will have a more diversified portfolio of products, clients and distribution networks.
Pioneer’s existing US operations will not be included in the new company but will be 50% owned by UniCredit, with Warburg Pincus and General Atlantic owning the remaining 50%.
Previous funding
Warburg Pincus and General Atlantic took a 50% stake in Santander AM for €700m in May 2013. The transaction, which valued the group at €2.05bn, saw Santander retain a 50% stake.
Unicredit acquired Pioneer Investments in 2000. Under the banking group’s tenure it has acquired HypoVereinsbank and expanded into India, Latin America and the CEE region.
Company
Headquartered in Madrid, Santander AM was founded in 1991. The group has assets of €172.5bn including investment funds, pension plans and institutional mandates. It has a headcount of 755.
Pioneer Investments was founded in 1928 and is headquartered in Milan. It has operations in 28 countries and employs 2,000 staff. The company has €225bn in assets under management.
The newly merged group posted total revenues of €43bn across 2013 and 2014.
Advisers
Company – Cleary Gottlieb Steen & Hamilton, Simon Jay, Gabriele Antonazzo, Magnus Jones, Lauren Briggs (Legal).
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