AXA Private Equity seals €510m spin-out(2)

AXA Private Equity, an active provider of unitranche financing recently in tandem with its buyout activities, has agreed to spin out from its insurer parent in a deal valuing the firm at €510m.

AXA Private Equity is to spin out from its parent, insurance group AXA announced late on Friday.

AXA Group will remain a shareholder in the business with a 27 percent stake, and will retain commitments to AXA PE’s funds totalling €4.8 billion between 2014 and 2018. These include its suite of private debt vehicles that have built a significant track record of unitranche financings over the last few years.

The acquiring investors comprise AXA PE’s senior management, alongside a group of institutions and French family offices. AXA PE’s 298 employees will be given the opportunity to participate in the deal through a dedicated vehicle.

The group said AXA PE’s management team, led by Dominique Senequier, would remain in full operational control of the business. “We promised to develop a structure that keeps our talented team together and reinforces our investment approach, which is particular to AXA Private Equity,” Senequier said in a statement. “As we embark on this next phase of our story as an independent firm, our future will be one of capturing new opportunities borne out of the renewed confidence and vigour that will come with this deal.”

Post-completion, AXA PE’s voting share capital would be divided between its management and employees (40 percent), external investors (33 percent) and AXA Group (27 percent).

The deal will “enable AXA to monetise its interest in AXA Private Equity, a business successfully developed by the group since 1996”, the insurance group said.

AXA Investment Management, the AXA Group subsidiary to which the private equity firm essentially belonged, will book €488 million in proceeds from the sale. This will be divided into an up-front payment of about €348 million and deferred consideration of up to €140 million.