Generali is negotiating to buy a majority stake in Sycomore Asset Management as part of its multi-boutique strategy in asset management that would strengthen its ESG ambitions.
Paris-based Sycomore AM, with more than €8.3bn in assets under management, is a pioneer in socially-responsible investments, Generali says.
Through the acquisition, Sycomore would become part of the Generali multi-boutique platform, helping Generali to become the number one multi-boutique in Europe.
While the Generali group would own the majority of Sycomore, Sycomore’s s founders would remain significant shareholders and its employees would increase their ownership.
The Sycomore team would continue to run the strategy and operations of the firm independently, says Generali.
The partnership builds on the existing business relationship and strategic alignment between Generali and Sycomore, and aims to offer substantial potential for revenue synergies, in particular through the acceleration of Sycomore’s international expansion and the development of tailored offerings towards retail and institutional clients.
The announcement is in line with Generali’s commitments to ESG and SRI topics given that Sycomore is a pioneer in the ESG segment in France (Europe’s largest market for ESG/SRI investment solutions).
The operation is still subject to regulatory approvals from Sycomore AM’s workers council and from the French regulator Autorité des Marchés Financiers.
Carlo Trabattoni, head of Generali Investment Partners, said: “Generali seeks to collaborate with entrepreneurial-minded individuals who have developed distinctive investment strategies supported by outstanding track records. Sycomore’s managers and employees truly stand out in their expertise area, and we are looking forward to closely working with them.”
Emeric Préaubert, Founding Partner and Chief Executive Officer of Sycomore Asset Management, stated: “We are delighted to begin a new phase in our long-standing partnership with Generali. Demand for Socially Responsible Investment solutions is rising as investor awareness and appetite increase. Generali’s multi-boutique platform will enable us to capitalize on the significant opportunities that this offers, while also allowing us to retain the unique cultural attributes which have supported our success to date.”