Azimut has established Azimut Alternative Capital Partners (AACP), a newco based in New York, with the purpose of investing in GP stakes of alternative managers specialized in the private markets space.
In line with the company's entry in the US private capital markets, it has signed an investment and shareholder agreement with Jeffry Brown, AACP's new CEO, aimed at executing the new firm's business plan.
The business plan aims at building the leading private markets strategic permanent capital solutions provider and business operator by acquiring minority stakes in alternatives asset managers.
Azimut said in a note that AACP was established to build a next generation, diversified, multi-affiliate investment firm by acquiring minority stakes in alternative asset managers and providing strategic value-added services and that its focus is on the large and growing, yet underserved segment of sub $3bn AUM alternative asset management businesses.
Alternatives industry veteran Jeff Brown has over two decades of investing, due diligence and operating management experience in the alternatives asset management industry. He was previously a managing director at Dyal Capital Partners, where he joined at its early days of formation. He founded and for five years led Dyal's Business Services Platform which drove value creation in the Dyal portfolio companies across three private equity funds totalling $9bn in AUM.
Prior to Dyal, Brown was a senior managing director at Bear Stearns Asset Management (BSAM). During his tenure at BSAM, he was chief development officer and led the strategic expansion of the firm from $23bn AUM to $ 55bn AUM in four years. Before, he held various senior roles at Morgan Stanley Asset Management.
AZ US Holding, Azimut US sub-holding company, will carry out the transaction, involving a 10-year business plan with put/call options, aimed at partnering with alternatives asset management businesses in the sub $ 3bn AUM space and helping them achieve their greatest business potential. In the base case of all the envisaged acquisitions, Azimut anticipates an investment of capital sufficient to achieve over $ 7 bn of pro-rata AUM (over $ 20 billion of affiliated AUM) in the next 10 years. The business plan also entails the entrance of further key senior managers over time, who have already been identified. Azimut and the management of AACP will cooperate to grow the business in the long term.
Jeffry Brown, CEO of AACP, said: "I am delighted to join the global Azimut family and look forward to building a next-generation multi-affiliate alternatives business leveraging the Azimut brand and my combined capabilities. Azimut's strong reputation as a committed and steadfast long-term partner give me confidence that we will achieve the business goals targeted in the plan".
Pietro Giuliani, chairman of Azimut Holding, added: "We are excited to have a top notch professional such as Jeff on board with us in this long-term initiative. We strongly believe in the opportunity of investing into alternative managers in the US with a long-term approach and commitment, very much in line with our Group DNA.
"We are convinced that this partnership will be successful and will allow strong alternative growth managers to have a trusted and long-term Partner helping them to reach their growth and business objectives."