TPG invests in Saxo Bank

TPG is understood to have paid around $550m for the stake – the whole of Saxo Bank is reportedly valued at around $1.8bn. The all-equity investment was made via the TPG VI fund, which closed on $19.2m in 2008.

The firm also took an option to increase its stake to 40% in due course. Saxo's founders Kim Fournais and Lars Seier Christensen will retain the majority of the shares.

The selling shareholders notably include General Atlantic and Banco Espirito Santo (ESFG). ESFG sold 3.7% of its 5.0% shareholding to TPG, which will also have the option to buy the remaining 1.3% until the end of October 2011.

A newco structure was put in place by TPG, but only to hold the shares it acquired from the vendors. The two founders' holdings remain in place and unchanged following the deal.

Previous funding
General Atlantic secured a minority stake in the company in 2005 via a DKK 728m growth capital investment. ESFG acquired its stake in 2008.

Saxo Bank's operating income has grown at an average of 30% per year since General Atlantic's investment in 2005.

Company
Established in 1992, Saxo is a provider of investment banking services using online technology. The Copenhagen-based business reported revenues of DKK 3.3bn in 2010, with a DKK 913m EBITDA. It currently employs around 960 staff.

People
Asiff Hirji led the deal for TPG. Kim Fournais and Lars Seier Christensen are founders, CEOs and majority shareholders in Saxo.

Advisers
Vendors – SEB Enskilda Corporate Finance (M&A).

 

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