London-based asset manager investment and development platform iM Square has made its first investment in Europe by acquiring French boutique Montmartre AM.
The transaction, subject to regulatory approval, will see Montmartre AM being rebranded as iM Global Partner Europe, which will further serve as the European commercial development of iM Square.
Announcements made by French market regulator AMF and French asset management association AFG to ease French fund regulatory framework and strengthen Paris as important financial hub have supported iM Square’s decision.
iM Square has unveiled plans to bolster the team and develop the technical resources of the asset management firm. It will also develop the existing range of short-term fixed-income products as well as launch France-domiciled funds which management will be delegated to iM Square’s partners.
At the same time, iM Square has purchased a minority stake in US boutique Dolan McEniry Capital, established in 1997 and specialised in investment grade and high yield US corporate bonds.
Dolan McEniry currently manages $5.8 billion through five strategies.
The transaction forms iM Square’s second investment in the United States for iM Square after it acquired a 20% stake in Polen Capital earlier in 2016.
iM Square has been founded in June 2015 by Philippe Couvrecelle, former chairman of the executive board of Edmond de Rothschild Asset Management, and Jean Maunoury, former head of Strategy at Edmond de Rothschild Asset Management.
With its founding shareholders Amundi, Eurazeo and Dassault Group / La Maison. iM Square seeks to invest €250m across five to ten investments over the next three years. 2017 might see a fourth shareholder entering iM Square’s capital. The platform may finance its long-term growth through a possible IPO.
Commenting Dolan McEniry’s investment, Philippe Couvrecelle, chairman of iM Square, commented: “Dolan McEniry has enjoyed an excellent track record since its creation with strategies resisting particularly well in difficult market environments. We are looking for partners who are complementary in their expertise, with the aim of providing to our clients, a range of strategies that are able to withstand sluggish economies and markets as well as a potentially long period of low fixed income yields.”
Regarding Montmartre AM, he added : “This acquisition will allow us to build the foundations of our commercial platform in Europe. The team will be reinforced by the recruitment of both a sales director and a risk director.”