SALU Capital closes buy-out of Augur Capital's private equity investment fund AFO-2
SALU Capital (SALU), together with its partners Apex Group (Apex), and Inlife Holding (Inlife), has closed the purchase of all outstanding shares of Augur Financial Opportunities 2 SICAV (AFO-2), a Luxembourg investment vehicle managed by German Augur Capital that includes the fund's portfolio companies, German life insurer myLife Lebensversicherung (myLife) and Luxembourg-based fund administration and ManCo business LRI Group (LRI ), from the Fund's investors in a secondary fund buy-out transaction.
The closing of this complex transaction, upon receipt of all regulatory approvals in Germany and in Luxembourg, is the latest step of SALU Capital, a young and growing private investment firm with a focus on special situations and contrarian investment opportunities in global financial services and insurance.
This deal is the second SALU has completed this year with its partner Apex, the leading global fund services giant, with now more than USD600 billion in assets under administration and over 40 offices around the world. It is SALU's first transaction together with its partner Inlife and part of a joint effort to pursue opportunities in the European insurance space that are driven by the transformation of capital allocations that result from regulatory changes and the difficult investment and yield environment.
Freshfields Bruckhaus Deringer LLP, Arendt & Medernach, Willkie Farr & Gallagher LLP, Linklaters, CMS, KPMG and Milliman provided counsel and transaction advice to SALU Capital and its partners Apex and Inlife. Elm Capital and Macfarlanes advised the Fund's shareholders. Norton Rose Fulbright advised the Fund.
Markus Philipp Ehrhardt, Managing Partner of SALU Capital, says: "We are proud to have completed this complex deal and to have delivered to everyone exactly what they desired and required, including the regulators. From an investor's perspective, this transaction is a showcase for the type of proprietary and scalable alternative investment ideas that we focus on and that deliver the level of risk-adjusted returns that a dynamic and entrepreneurial investment firm like ours can still achieve. Our list of proprietary, contrarian opportunities in global financial services and insurance is extraordinarily long, especially in Europe, and we are excited to continue to execute at the highest level and to build our firm and our portfolio."
Peter Hughes, Founder & Chief Executive Officer, Apex Group Ltd, says: “With the closing of this deal, the Apex Group now has over 500 employees in Luxembourg, making it our largest service centre globally. The addition of LRI reinforces our extensive industry knowledge and capabilities in the Luxembourg and German markets and further complements the recent close of the M.M.Warburg & CO’s Asset Management and Servicing business deal. As a combined group we now have the most extensive fund service offering in the market and an unrivalled presence in Europe.”
Martin Vogl, Chairman of Inlife’s life carriers, says: "We are excited to support myLife and its management team in its effort to continue to build on its proven strengths with its excellent track record in the fee-based financial advisory and insurance business as well as its outstanding policy administration and client service capabilities, and we look forward to pursuing further potential opportunities with SALU Capital on the back of this successful transaction."
Frank Alexander de Boer, Managing Director of LRI Group, says: “The closing marks a milestone in LRI’s 30-year history. We now look forward to expanding our current high quality and high flexibility services with access to a broad range of additional service capabilities for our clients on a global scale. Over the past year, dedicated teams across the Group have been working together to ensure the transition is as seamless as possible for clients and business partners.”