Global private equity firm TA Associates has completed an investment in DNCA Finance SA, a French asset management firm with EUR5.8 billion in funds under management. Terms of the investment have not been disclosed.
TA Associates purchased its stake in DNCA from majority shareholder Gruppo Banca Leonardo, the pan-European, Milan-based investment bank. Following the transaction, the shareholder base is now comprised of TA Associates, who will become the largest shareholder, the incumbent management team and Gruppo Banca Leonardo. The management team, which will continue to be led by executive chairman Joseph Chatel and CEO and CIO Jean-Charles Mériaux, will increase their shareholding as part of the transaction and will hold in excess of 40 percent of the equity. Gruppo Banca Leonardo will hold around 10 percent of the equity.
Headquartered in Paris and staffed by 45 employees, DNCA is one of the largest independent fund management boutiques in France. The company was founded in 2000 by Xavier Delaye, Charles Nouailhetas and Joseph Chatel, and now manages a diverse range of equity, bond, convertible and absolute return products investing both in France and internationally. DNCA’s fund stable includes the EUR1.8 billion Centifolia, one of France’s largest equity funds, managed by renowned fund manager Jean-Charles Mériaux. In March of this year, DNCA was awarded best French Asset Manager in its class at the Grand Prix Eurofonds-FundClass 2011 Awards.
“Having previously made investments in the likes of Jupiter Fund Management in London and First Eagle in the US among many others, TA’s deep experience in the fund management sector was very important to us in selecting a new partner,” says Jean-Charles Mériaux, CEO and CIO of DNCA. “With its significant experience in this sector, TA will be able to assist DNCA with our continued expansion in France and elsewhere in Europe.”
“DNCA is one of only a handful of independent fund managers in the French market that has established a strong brand both amongst distribution partners and with investors,” says Christopher Parkin (pictured), Director, TA Associates Ltd., who will join DNCA Finance’s Board of Directors. “The company has a broad fund management team running a diverse range of funds which provide it with significant room to grow.”
Ajit Nedungadi, a Managing Director in TA’s London office will also join the board.
“TA has built an impressive reputation in the asset management industry as a sophisticated long-term investor,” says Joseph Chatel, Executive Chairman, DNCA. “We very much look forward to working together to grow the business.”
“This transaction is consistent with our mission to be a leading, independent group, focused on its clients across continental Europe,” says Gerardo Braggiotti, CEO of Gruppo Banca Leonardo. “DNCA continues to be an important partner of our group and we are happy to have advised them to find the best strategic opportunity for their growth.”
