Trusteam Finance, a Paris-based boutique specialising in socially responsible investment, is acquiring competitor Gaspal Gestion.
Should the deal gain regulatory approval, this would push Trusteam Finance’s AUM past €1 billion.
The firm currently has €830 million in AUM, with Gaspal Gestion bringing over €600 million in assets.
According to Trusteam, the companies are aiming to complete this deal in the first quarter of 2023.
Gaspal Gestion, also based in Paris, has been targeted due to its specialisation in fixed income, according to Trusteam chairman Jean-Sébastien Beslay.
“Their bond expertise and their investment process on corporate dividend strategies are assets for the future growth of Trusteam,” said Beslay.
“Increasing the size of our assets and broadening our range of funds will allow us to take a step forward, to open up new development prospects while continuing to focus on our driving force: the satisfaction of our clients.”
Beslay added this acquisition was part of the firm’s plans to reach €2 billion in AUM by 2025, with four funds of €100 million in size as part of this in 2023.
Gaspal Gestion runs a variety of funds over equities, multi-asset and bonds, as well as personalised and advisory mandates. It was founded in 2006 by Christian Ginolhac, former CEO of Banque Vernes.
Earlier this week, Funds Europe’s Paris CEO roundtable heard from senior figures in the French asset management industry who predicted the next decade would be “unprecedented”.
Joseph Pinto, chief executive officer of Natixis Investment Managers International, told the panel that consolidation would potentially slow as the industry adjusted to cost pressures.
He said: “Ten years ago, at the Funds Europe France CEO panel, we talked about the reinforcement of the regulation and about greater price pressure.
“The average profitability of the industry is not far off where it was ten to 15 years ago, meaning the industry has been able to adapt because of a greater product mix and an adjustable cost base.”
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