French small-cap specialist boutique Sepiam is to be acquired by fund management group Montségur Finance for an undisclosed sum.
It has yet to be confirmed if Sepiam will retain its brand name or autonomy post-transaction.
The fund house’s core European strategy – the $9.3 million Sepiam Funds Europe Small Caps – caught the attention of Montségur Finance, which is developing its small and mid-cap European offering.
François Chaulet, president of Montségur Finance, said the European small-cap sector is “very difficult to address correctly”, with many funds being “too concentrated or biased by geographical proximity” to where the manager is based.
He added that the firm was “looking to invest in small European growth companies, valued between €500 million and €3 billion.”
The Sepiam Europe Small Cap fund has a portfolio of 120 stocks, favouring quality and growth. The fund delivered one-year trailing returns of -10.86% but managed a 9.09% return over three years, FT Markets data shows.
Last year’s performance was impacted by “massive capital outflows”, the firm said in its statement.
Sepiam’s Damien Grulier, president, and Yohan Kadri-Caillaux, co-founder, will remain leading the small-cap strategy.
Montségur Finance manages a mandate of €800 million, predominantly from private clients.
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